FAAC: Deadlock ends as FG, States, LGs Share N668.89bn
After three consecutive meetings to agree on revenues received into the federation account, which ended in deadlock, the Federal Accounts Allocation Committee (FAAC) yesterday announced that it had finally shared N668.898 billion to the three tiers of government.
There have been allegations that the Nigerian National Petroleum Corporation (NNPC) failed to remit the actual money generated as revenue to the federation account. In a statement issued by the director of information in the federal ministry of finance, Hassan Dodo, noted that after the controversial remittances and blames that had trailed the Committee meeting for about two months, FAAC finally agreed to share the available amount.
Hassan said the decision to accept the amount available was to cushion “the undue hardships being experienced by workers nationwide”, which he said “has made it necessary to distribute the May figures totaling N668.898 billion to the three tiers of Government, while efforts are being intensified to address the unsatisfactory remittances.” According to the statement, the N668.898 billion is made up of statutory distributable sums of N575.475 billion and N93.423 billion from the Value Added Tax (VAT).
The total revenue realised for the month was shared in line with the extant formula as follows: federal government – N282.223 billion; state governments – N181.167 billion; and local government councils – N136.490 billion. The oil producing states received N53.071 billion as 13 per cent derivation, while the sum of N15.947 billion was paid to the revenue generating agencies as costs of collections.
The statutory revenue of N575.475 billion received for the month of May 2018 was lower than the N613.057 billion received for April 2018 by a total of N37.582 billion.
From the total statutory revenue of N575.475 billion, the federal government was given N268.770 billion, the states – N136.324 billion, local government areas – N105.100 billion; the oil producing states – N53.071 billion, and the revenue generating agencies received N12.210 billion as costs of collections.
For the month of May 2018, the total revenue of N93.423 billion from the Value Added Tax (VAT) was N5.458 billion higher than the N87.965 billion distributed in April 2018. From the total of N93.423 billion, the federal government received N13.453 billion, states received N44.843 billion, local government councils received N31.390 billion, while revenue collecting agencies received N3.737billion.