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  • FAAC: Fed Govt, states, councils share N617.566b

    The Federal, states and local government areas have shared N617.566 billion as Federal Allocation for the month of March this year.

    A communiqué issued by the Technical sub -Committee of Federation Accounts Allocation Committee (FAAC) released at the end of its meeting in Abuja yesterday, showed that N446.647 billion was received as gross statutory revenue, which is lower than the N478.434 billion received in the previous month by N31.787 billion.

    Also, the revenue generated from Value Added Tax (VAT) was N92.181billion which is a decrease from the N96.389 billion generated from previous month, with N4.208 billion. There was also N653 million from Exchange Gain, N13.085 billion from Forex Equalisation; N55.000 billion from Good & Valuable Consideration as well as N10 billion added by the Nigerian National Petroleum Corporation (NNPC).

    These therefore, brought the total revenue distributable for the month to N617.566 billion.

    From the Net Distributable Revenue for the month, the Federal Government got N257.758; states-N168.254 billion; local government councils-N126.575 billion, while the Oil Producing States received N49.823 billion representing 13 per cent derivation of mineral revenue.

    Read also: ‘N1.92tr shared to three tiers by FAAC in three months’

    The Cost of Collection, Transfer and Federal Inland Revenue Service (FIRS) refund moved up to N15.156 billion.

    From VAT realised, Federal Government received N13.274 billion representing 15 per cent; states received N44.247 billion representing 50 per cent while the Local Government Councils received N30.973 billion also representing 35 per cent.

    For statutory revenue generation shared, the Federal Government was N208.394 billion representing 52.68 per cent; state government-N105.700 billion, Local Government Council received N81.490 billion.

    Crude oil export sales increased by about 49.18 per cent due to the increase in lifting volume, which resulted in increased Federation Revenue of about $240.23 million. Also, the average crude oil price increased from $63.62 to $79.06 per barrel.

    However, lifting operations were adversely affected by production shut-in, and shut-down at various terminals due to technical issues, leaks and maintenance. There were also remarkable increase in revenues from oil royalty, import and excise duties increased, while Petroleum Profit Tax (PPT) decreased significantly.

    The balance on Excess Crude Account is $183 million.

  • FG, States, LGAs share N617.566bn in March

    A total of N617.566 billion has been distributed as Federal Allocation for the month of March, 2019 among the Federal Government, State Governments and Local Government Councils.

    A communique issued by the Technical sub -Committee of Federation Accounts Allocation Committee (FAAC) released at the end of meeting in Abuja on Tuesday indicated that the Gross statutory revenue received is N446.647 billion lower than the N478.434 billion received in the previous month by N31.787 billion.

    In the same vein, the revenue generated from the Value Added Tax (VAT) was N92.181billion.

    This is a decrease from the N96.389 billion generated from previous month with N4.208 billion.

    There was also N653 million from Exchange Gain, N13.085 billion from Forex Equalization;  N55.000 billion from Good & Valuable Consideration as well as N10 billion added by NNPC.

    Read also: ‘N1.92tr shared to three tiers by FAAC in three months’

    These therefore, brought the total revenue distributable for the current month to the sum of N617.566 billion.

    Consequently, from the Net Distributable Revenue for the month, Federal Government received N257.758; States received N168.254 billion; Local Government Councils received N126.575 billion, while the Oil Producing States received N49.823  billion representing 13% derivation of Mineral revenue.

    The cost of collection, transfer and FIRS Refund came up to N15.156 billion.

    Furthermore, the distribution of the Value Added Tax (VAT) realized, is thus: Federal Government received N13.274 billion representing 15%; States received N44.247 billion representing 50% while the Local Government Councils received N30.973 billion also representing 35%.

    The communiqué also showed the breakdown of allocation from the statutory revenue generated as: Federal Government N208.394 billion representing 52.68%; States Government N105.700 billion, Local Government Council received N81.490 billion.

    The communiqué further explained that Federation Crude oil export sales increased by about 49.18% due to the increase in lifting volume, which resulted in increased Federation Revenue of about $240.23 Million.

    Also, the average crude oil price increased from $63.62 to $79.06 per barrel.

    However, lifting operations were adversely affected by production Shut-in, Shut -down at various Terminals due to technical issues, leaks and maintenance.

    There were also remarkable increase in revenues from Oil Royalty, Import and Excise Duties increased, while Petroleum Profit Tax (PPT) decreased significantly.

    The balance on Excess Crude Account is $183 Million.

  • ‘N1.92tr shared to three tiers by FAAC in three months’

    GOING by the record of the National Bureau of Statistics (NBS), the Federation Account Allocation Committee (FAAC) has disbursed N1.92 trillion to the three tiers of government in the first quarter of this year.

    The NBS figures are allocations by the FAAC for the months preceding when they were shared. For instance, allocation by FAAC for the December 2018 was shared in January, 2019 and so for the other two months of February and March.

    The NBS figures which tallied with the figures from the Office of the Accountant General of the Federation (OAGF) said FAAC disbursed N649.19 billion to the three tiers of government in January, 2019 (December 2018); N660.37 billion in February (January 2019) and the sum of N619.86 was distributed to the three tiers in March (February 2019). FAAC Allocations for March 2019 will be done later this month.

    Of the N1.92 trillion so far disbursed, the Federal Government has received N803.18 billion in the three months, states have received N530.14 billion while the local governments have received N398.43 billion.

    Interestingly, in January 2019, Delta State received the highest allocation of N17, 360,640,513.62 excluding the N3, 862,469,150.06 the state collected on behalf of its 25 local government areas.

    Osun State got the lowest allocation of N1, 730,201,728.81 aside the N3, 886,506,134.26 it collected on behalf of the 30 local government areas of the state.

    Read also: NNPC’s $1.7b debt to FAAC

    The NBS breakdown showed that the federal government received N270.17 billion in January, N275.33 billion in February and N257.68 billion in March while the 36 states received N178.04 billion in January, N182.17 billion in February and N169.93 in March. All the 774 Local governments received N133.83 billion in January, N136.88 billion and N127.72 billion in March.

    The NBS report further revealed that the amount disbursed in January comprised N547.46 billion from the Statutory Account, N100.76 billion from Valued Added Tax (VAT) and N976.53 million exchange gain differences while the sum of N45.36 billion was shared among the oil producing states as 13 per cent derivation fund in January 2019 alone.

    Further breakdown of revenue allocation distribution to the Federal Government revealed that the sum of N216.57 billion was disbursed to the federal government’s consolidated revenue account. N4.81billion was disbursed as share of derivation and ecology and N2.43 billion as stabilisation fund. N8.15 billion was shared for the development of natural resources and N5.82 billion to the Federal Capital Territory (FCT), Abuja.

    The report also stated that revenue generating agencies such as “Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N4.69 billion, N4.04 billion and N8.04 billion respectively as cost of revenue collections.”

    For February, the report said the amount disbursed comprised N497.12 billion from the Statutory Account; N104.47 billion from Valued Added Tax (VAT) and N8.12 billion as excess charges recovered. The sum of N50 billion was distributed as FOREX Equalisation Fund and N654.70 million as exchange gain differences. N48.49 billion was shared among the oil producing states as 13 per cent derivation fund in February.

    Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N5.66 billion, N7.62 billion and N4.07 billion as cost of revenue collections.

    Further breakdown of revenue allocation distribution to the Federal Government of Nigeria received the sum of N221.33 billion into the consolidated revenue account. N4.94 billion was disbursed as share of derivation and ecology and N2.47 billion as stabilisation fund. Also, N8.30 billion was shared for the development of natural resources and N5.90 billion to the Federal Capital Territory (FCT) Abuja.

    In March, the NBS report revealed that the amount disbursed comprised of N474.42 billion from the Statutory Account, N96.39 billion from Valued Added Tax (VAT), N4.02 billion as excess bank charges recovered. N44.17 billon was distributed as FOREX Equalisation Fund and N858.46 million as exchange gain differences. N50.95 billion was shared among the oil producing states as 13 per cent derivation fund in the month. Further breakdown of revenue allocation distribution to the Federal Government of Nigeria received the sum of N203.04 billion into the consolidated revenue account while N4.63 billion was disbursed as share of derivation and ecology; N2.31 billion as stabilisation fund.

    Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N3.91 billion, N6.49 billion and N3.19 billion as cost of revenue collections.

    The NBS report also noted that thr sum of N7.77 billion was shared for the development of natural resources and N5.52 billion to the Federal Capital Territory (FCT) Abuja in March.

  • Fed Govt, states, local govts share N619.857b

    THE three tiers of government – federal, states and 774 council areas —yesterday shared N619.857 billion as Federal Allocation for  February.

    A communiqué issued by the Technical  Sub -Committee of the Federation Accounts Allocation Committee (FAAC) at the end of its February meeting, indicated that the gross statutory revenue received was N478.434 billion.  It was lower than the N505.246 billion received in the previous month by N26.812 billion.

    Addressing reporters at the end of yesterday’s meeting in Abuja, the Director of Funds in the Office of the Accountant-General of the Federation (OAGF), Muhammed Usman, said: “Federation crude oil export sales increased by about 46 per cent resulting in increased federation revenue from $425.00 million previously to $574.95 million. Shut-in and shut-down persisted while some terminals remained closed due to leaks and maintenance.

    Read also: Trouble brewing as NNPC owes FAAC $1.7bn

    “Petroleum Profit Tax (PPT) increased significantly while Companies Income Tax (CIT) recorded a marginal increase. Revenues from Value Added Tax (VAT), Oil Royalty, Import and Excise Duties decreased in February, 2019.

    “The distributable statutory revenue for the month is N478.434 billion. The total revenue distributable for the current month (including VAT, Exchange Gain, Excess Bank Charges recovered and Forex Equalisation) is N619.857 billion.

    “Therefore, from the total distributable revenue for the month, the Federal Government received N257.681 billion representing 52.68 per cent; states received N169.925 billion representing 26.72 per cent; local government areas received N127.722 billion representing 20.60 per cent; while the oil-producing states received N50.946 billion also representing 13 per cent derivation revenue.”

    Usman further disclosed that “the balance in the Excess Crude Account (ECA) as at 27th March, 2019 is $183 million.”

  • ‘Late Bayelsa photographer left four children behind’

    The Bayelsa State Government on Tuesday held the first monthly Transparency Briefing without the presence of the late popular photographer attached to the Government House,Reginald Dei.

    Commissioner for Information and Orientation, Daniel Iworiso-Markson, however, dedicated his opening remarks to mourn the gruesome murder of Dei by unknown soldiers during the Presidential and National Assembly elections in Southern Ijaw Local Government Area of the state.

    It was a moment of sober reflection as journalists observed the conspicuous absence of Dei, who until his untimely death was a regular smiling face at the Deputy Governor’s Conference Hall, the venue of most briefings.

    Iworiso-Markson, who was close to tears, said it was painful that the late photographer died of electoral violence and not of a natural cause.

    “I am completely devastated as I walked in here without noticing the presence of our photographer, Reginald Dei. It dawned on me that Dei would have been here if not for his untimely death in the hands of state actors and non-state actors during the last elections.

    “If Dei had died of a natural cause, we would have understood it but he was killed in electoral violence that occurred in Southern Ijaw orchestrated by state actors and the main opposition party”.

    READ ALSO: ‘Buratai should produce killers of photographer, PDP chief’

    The commissioner lamented that Dei left four children behind and wondered why people would just move on after such shocking tragedy that befell the state.

    “Now we have gathered again but we lost someone, who is supposed to be here with us,” he said and urged journalists to actively cover the proceedings of the Judicial Commission of Inquiry established by Governor Seriak to probe electoral violence in the state.

    Iwe Dicksonoriso-Markson also urged media practitioners to show more sense of responsibility and responsiveness in fighting against the ills of society through their reports.

    In an emotion-laden voice, the Commissioner also mourned other victims of the onslaught allegedly perpetrated by military personnel in the last general elections.

    He stressed the need for journalists to demonstrate solidarity with their slain colleague by covering and effectively reporting proceedings of the commission.

    At the briefing, Deputy Governor Rear Admiral John Jonah (retd) explained the N107million increase in the state’s February wage bill, saying it was because of payment of salaries to the 1000 newly employed civil servants.

    Jonah (Retd) gave the explanation while reeling out financial figures for January and February 2019.

    He said the state government spent N2.82bn in the payment of civil servants salaries for last month as against N2.72bn in January.

    Jonah also explained the difference of N3.7bn in capital payments within the period was as a result of more work done on various ongoing capital projects in the state.

    He announced N2.7bn as capital payment for January and N6.4bn for February, noting payment for such projects were usually determined by the extent of work carried out on them.

    He said: “Yes, there is an increase or a difference between the capital expenditure of January and February 2019. If you put your mind to the number of projects we are doing, the difference is actually small money.

    “And for any person that has a fair knowledge of project management, you know that payments are done based on certificates presented to you on the extent of work carried out.

    “As you all know, we are working on the Ekeremor Road. And for the fact that we drove to Ekeremor, doesn’t mean we’ve paid to that extent.

    “We are also on the Central Senatorial Road going to Oporoma. We are also trying to complete the Onopa Bridge.

    “All these are outstanding jobs that we regularly pay. But you don’t expect the work rate to be the same every month. So is the amount paid. It doesn’t follow any linear arrangement.”

    Jonah, who acknowledged the receipt of N16.11bn from the Paris Club Refund between January and March, said out of the amount N1.25bn was released to local government councils.

    He disclosed the state had a gross inflow of N12.3bn from the Federation Account Allocation Committee (FAAC) for January while that of last month stood at N13.2bn.

    The deputy governor however explained that Net FAAC inflow dipped to N10.7billion for January as against N11.6billion in February after first line FAAC deductions of N1.54bn were made for each month.

    He also announced N968million as internally generated revenue (IGR) for December 2018 while that of January this year was put at N1.09billion.

  • Federal allocation account now N8.5tr, says NEITI

    The Federation Allocation Account Committee (FAAC) has disbursed N8.5 trillion to the three tiers of government and others, the Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed adding it is the first time since 2014, that disbursements would exceed N2 trillion in three consecutive quarters.
    According to NEITI, the total of N8.52 trillion shared among the three tiers of government in 2018 represented 32.8 percent increase when compared to N6.418 trillion disbursed in 2017 and 67.1percent higher than N5.1 trillion shared in 2016.
    A further breakdown of the FAAC disbursements showed that the Federal Government received N3.483 trillion in 2018 representing 41percent while the 36 States received the sum of N2.85 trillion; representing 33.4percent and the 774 local governments got N1.667 trillion, representing 19.6percent.
    The Director of Communications and Advocacy, Dr. Orji Ogbonnaya Orji, said these pieces of information and data were contained in the latest edition of NEITI Quarterly Review which analysed disbursements from FAAC in 2018 and made revenue projections for 2019.
    On the states’ share of the FAAC disbursements, the review disclosed that five states received higher than N100 billion each in 2018. The States were Lagos (N119 billion), Bayelsa (N153.1 billion), Rivers (N172.6 billion), Akwa Ibom (N202.4 billion), Delta (N213.6 billion). The NEITI publication further disclosed that twenty-three states received less than N60 billion each as total FAAC receipts in 2018.
    A break down shows that Cross River, Ekiti and Ogun states received N37 billion, N39.3 billion and N39.6 billion respectively. Eight states namely: Zamfara, Gombe, Plateau, Kwara, Ebonyi, Nasarawa, Taraba, and Adamawa, received between N40 billion and N49.9 billion.
    The NEITI publication observed that government revenues had continued to be on the increase since 2017. “The rebound in federation revenue continued as a result of increases in both oil and non-oil revenue”, the review stated. A quarterly breakdown of disbursements in 2018 showed a steady increase in the amount disbursed throughout the year.
    For instance, in the first quarter of the year, FAAC shared N1.938 trillion, while N2.008 trillion was disbursed in the second quarter. Disbursements in the third and fourth quarters were N2.278 trillion and N2.299 trillion respectively.

  • FG, States, LGs share N649.198b monthly allocation

    A total of N649.198 billion has been distributed as federal allocation for the month of December, 2018 to the Federal,State Governments and Local Government governments

    The technical sub -committee of the Federation Accounts Allocation Committee (FAAC) in a communiqué on Friday read by the Accountant General of the Federation (AGF), Mr. Idris Ahmed, put the gross statutory revenue received at N547.462 billion.

    The amount is lower than the N649.629 billion received in November by N102.167 billion.

    Ahmed noted that federation crude oil export sales dropped by 1.7 million barrels resulting in a drop in federation revenue by $83.54 Million regardless of a significant increase in price from $72.84 to $81.06 per barrel for the month.

    “There was also Shut-in, Shut -down and Closure of production at various Terminals due to fire leakages and flooding,” the AGF said.

    Revenues from Value Added Tax (VAT), Import and Excise Duties and Royalities increased marginally while Company Income Tax (CIT) and Petroleum Profits Tax (PPT) decreased significantly.

    The total revenue distributed for the month (including VAT and Exchange Gain Difference) is N649.198 billion.

    Read Also: Buhari swears in Ibrahim Tanko as acting CJN

    Therefore, from the Net Statutory Revenue, Federal Government received N255.202 billion representing 52.68%; States received N129.442 billion representing 26.72%; Local Government Councils received N99.794 billion representing 20.60%; while the Oil Producing States received N45.524 billion also representing 13% derivation revenue.

    The cost of collection, transfer and FIRS refund came up to N 21.530 billion.

    Furthermore, from the Revenue available from the Value Added Tax (VAT), Federal Government received N14.510 billion representing 15%; States received N48.365 billion representing 50% while the Local Government Councils received N33.856 billion also representing 35%.

    The AGF maintained the balance in the Excess Crude Account remains $0.631 Billion.

  • FAAC payment to states rise by 36%

    DISBURSEMENTS to states from Federation Account Allocation Committee (FAAC) rose 36 per cent this year to N8.52 trillion, a report released at the weekend has shown.

    The report from Financial Derivatives Company Limited, a financial advisory and research firm, showed that FAAC allocation released in December rose 3.13 per cent to N812.76 billion.

    Annualised, the total disbursement to the states stood at 36 per cent (N8.52 trillion) higher than last’s year’s N6.25 trillion, the report said.

    It said that despite higher government revenue, the purchasing power of Nigerian consumers has been falling, leading to a slide in headline inflation for most of 2018.

    It said: “The biggest threat to macroeconomic stability is the sharp fall (nine per cent) in the price of oil in December to $53.54 per barrel. The increased liquidity due to a higher FAAC disbursement is likely to put pressure on domestic commodity prices over the Christmas break.”

    The depreciation of the naira against the dollar, which closed last week at N364/$ at the parallel market also meant that more local currency will be shared among states, as against what obtains at a period of stronger naira.

    The report said the crude oil prices also lost 11 per cent in the last one week, closing at $53.54 per barrel, and about 46 cents below the budget benchmarks for 2019. Other fundamentals point towards oil prices remaining below $60 per barrel due to increased supply from top producers including Russia.

    The external reserves stayed high at $43.13 billion at the close of last week.

    According to the Central Bank of Nigeria (CBN), the Nigeria’s over-dependence on crude oil for foreign exchange revenue meant that shocks in the oil market were transmitted entirely to the economy via the forex markets as manufacturers and traders who required forex to purchase their inputs as well as goods, were faced with a depleting supply of foreign exchange in the country.

    It said the impact of this decline on our reserves was evident in the rise in the value of the dollar relative to the naira; and a rise in the Consumer Price Index (CPI) due to the increase in the cost of imported inputs and goods.

  • FAAC: Fed Govt, states, councils share N698.7b

    The Federal, states and local governments yesterday shared N698.710 billion for September.

    Minister of Finance Zainab Ahmed, who presided over the monthly Federation Account Allocation Committee (FAAC) meeting, stressed the need for the tiers of government to save.

    The Minister told members of the committee to maintain transparency and save for the rainy day.

    A communique by the Technical Sub-Committee of FAAC after its meeting which held on Wednesday and signed by the Accountant-General of the Federation Ahmed Idris noted that the distributable statutory revenue for the month was N569.281 billion and the total revenue distributable for the month stood at N698.710 billion.

    “Crude oil export sales increased by 0.17 million barrels resulting in increased revenue to the Federation of $8.48 million. However, the average unit price dropped from $77.10 to $75.69. There was shutdown of pipelines which resulted in shut in of production at various pipelines. Revenue from Royalties increased significantly while Value Added Tax (VAT), Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) decreased significantly.”

    The breakdown for the month of September shows that the gross revenue available from the VAT was N79.154 billion as against N114.542 billion distributed in the preceding month, resulting in a decrease of N35.388 billion.

    The report also indicated that while the federal government got N277.197 billion, the state and local governments got N172.810 billion and 130.534 billion respectively. Derivation (13% of mineral revenue) amounts to N52.596 billion and cost of collection/transfer and FIRS Refund was put at N15.572 billion.

    “The distributable Statutory Revenue for the month is N569.281 billion. The total revenue distributable for the month (including VAT and Exchange Gain Difference) is N648.710 billion.

    The report of the committee on the Excess Crude Account (ECA) was stepped down and withdrawn to enable the committee to rework and represent it at the next meeting.