FAAC: FG, states, LGAs share N467.8bn for July

The revenue shared yesterday to the federal, state and local
governments from the Federation Account for July dropped by N183.26
billion from the amount shared for June.

The amount shared yesterday is N387.31billion compared to June’s
N570.58 billion.

The Permanent Secretary in the Ministry of finance, Dr. Mahmoud
Isa Dutse, confirmed the amount yesterday at the close of the joint
monthly Federation Account Allocation Committee (FAAC) meeting.

The amount shared comprised Value Added Tax (VAT), Company
Income Tax (CIT) and Petroleum Profit Tax (PPT).

Dr. Dutse said the decline in revenue was caused by a drastic
fall in revenue from Companies Income Tax due to the expiration of
the deadline for filing tax returns.

He noted that while oil revenue recorded increases due to rise
in export sales for the federation by $62 million, the same could
not be said of non-oil revenues.

Dutse said: “Though the month under consideration recorded
increase in average price of crude oil from $50.27 to $51.05 per
barrel and significant increase in export volume by 1.20 million
barrels, resulting in increase revenue from export sales for
federation by $62 million, the amount shared reduced
drastically.”

A breakdown of the total allocation for July showed that the
Federal Government received N193.04 billion, states (N130.69
billion) and local government areas (N98.01 billion) while N31.59
billion was given to the nine oil producing states as 13 per cent
derivation.

Chairman, Forum of Finance Commissioners, Mahmud Yunusa,
lamented the drop in revenue.

He warned: “The time has come for states to start looking
inwards to shore up revenue. We need to block leakages in revenue
and come up with reforms to shore up revenue. We are also working
on cost of running governance and any cost that is not necessary in
running government needed to be reduced.”

The revenue shared yesterday to the federal, state and local
governments from the Federation Account for July dropped by N183.26
billion from the amount shared for June.

The amount shared yesterday is N387.31billion compared to June’s
N570.58 billion.

The Permanent Secretary in the Ministry of finance, Dr. Mahmoud
Isa Dutse, confirmed the amount yesterday at the close of the joint
monthly Federation Account Allocation Committee (FAAC) meeting.

The amount shared comprised Value Added Tax (VAT), Company
Income Tax (CIT) and Petroleum Profit Tax (PPT).

Dr. Dutse said the decline in revenue was caused by a drastic
fall in revenue from Companies Income Tax due to the expiration of
the deadline for filing tax returns.

He noted that while oil revenue recorded increases due to rise
in export sales for the federation by $62 million, the same could
not be said of non-oil revenues.

Dutse said: “Though the month under consideration recorded
increase in average price of crude oil from $50.27 to $51.05 per
barrel and significant increase in export volume by 1.20 million
barrels, resulting in increase revenue from export sales for
federation by $62 million, the amount shared reduced
drastically.”

A breakdown of the total allocation for July showed that the
Federal Government received N193.04 billion, states (N130.69
billion) and local government areas (N98.01 billion) while N31.59
billion was given to the nine oil producing states as 13 per cent
derivation.

Chairman, Forum of Finance Commissioners, Mahmud Yunusa,
lamented the drop in revenue.

He warned: “The time has come for states to start looking
inwards to shore up revenue. We need to block leakages in revenue
and come up with reforms to shore up revenue. We are also working
on cost of running governance and any cost that is not necessary in
running government needed to be reduced.”