The Nation Newspaper

Tag: Federal Allocation

  • 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.”

  • FG, States, LGs share N619.857bn for February

    A total of N619.857 billion has been distributed as federal allocation for the month of February 2019 among the Federal, States and Local Government Councils.

    A communiqué by the Technical Sub -Committee of the Federation Accounts Allocation Committee (FAAC) at the end of its February meeting, indicated the gross statutory revenue received was N478.434 billion.

    This sum is lower than the N505.246 billion received in the previous month by N26.812 billion.

    Addressing journalists at the end of the meeting in Abuja on Wednesday, the Director of Funds in the Office of the Accountant General of the Federation (OAGF) Mr. Muhammed Usman, said “Federation Crude Oil Export sales increased by about 46 percent 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.

    “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.”

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

    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 Equalization) is N619.857 billion.

    Therefore, from the total distributable revenue for the month, the Federal Government received N257.681 billion representing 52.68 percent; States received N169.925 billion representing 26.72 percent; Local Government Councils received N127.722 billion representing 20.60 percent while the Oil Producing States received N50.946 billion also representing 13 percent derivation revenue.

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

  • Minimum wage: Fayemi canvasses upward review of federal allocation

    Ekiti State Governor, Dr Kayode Fayemi, on Saturday said that the Federal Government needed to address the current revenue allocation formula, to enable state governments pay the new minimum wage being requested by workers.

    Fayemi spoke when he received the President of the Nigeria Labour Congress (NLC), Mr Ayuba Wabba, who paid him a courtesy visit in his office, in Ado-Ekiti.

    He said that Ekiti, which received one of the lowest allocations in the country, would require extra N2bn monthly to be able to pay.

    The governor, who explained that the N30,000 minimum wage was not a comfortable living wage for workers, said he was convinced that governors would pay if the Federal Government creates the enabling environment for them to do so.

    He, however suggested a collective approach by labour leadership, the government and the general public.

    Fayemi said the issue of affordability was key in paying the proposed minimum wage

    The governor said Ekiti had always been paying above the national minimum wage as the state
    was  paying N19, 350 as against the N18,000 minimum.

    He, however, said that for Ekiti State to pay the new N30,000 minimum wage, it would need an additional N2 billion in addition to the current wage bill of N2.6 billion, totalling N4.6bn.

    This, he said was the case in many other states, disclosing that Ekiti earns averagely N3bn federal allocation monthly.

    “I am not holding brief for
    the governors because I am the youngest among them, having only come to office barely a month ago.

    ”So, I cannot speak on what has transpired in your negotiation in the course of this tripartite committee,” he said

    Fayemi said if he were, however, to put hinself in the shoes of his colleagues, giving the fact on ground in Ekiti, he believed it was only a question of affordability, ability to pay.

    “As long as we have the revenue allocation formula that we have in the country, even in states where you have willing partners and comrades that are not going to contend the N30,000 figure, if nothing is done about current revenue allocation, this will be tough on states.

    “In fact, this N30,000 is not even enough, Mr President, I don’t know anyone who can really live
    comfortably on N30,000, let alone the N18,000 we are currently paying.

    “I think we need a collective approach to this beyond the game of numbers.

    “The workers are very critical components to the productive base of our country, because it is the human capital and it has to be motivated human capital.

    ” It has to be an enthusiastic human capital that can deliver the goods to the populace,” Fayemi said.

    The NLC President, who met with the governor together with some national and Ekiti State labour union leaders, had solicited the cooperation of all governors in the payment of the N30,000 minimum wage.

    He said that all states should be able to afford it.

    Wabba also lauded Fayemi for his administration’s demonstrated love for the workers’ welfare.

    He commended him on the recent release of N200m for teachers’ car and housing loans as well as the abolishing of development levies in public primary and secondary schools in the state, among others.

    “We know your pedigree and I am not surprised about this. We know you are a friend of workers.

    ”In 2012, you were the first to pay the N18,000 minimum wage in the South West and second in
    Nigeria. You even paid N19,300,” Wabba said.

    The NLC boss stressed the need for state governments to ensure transparency and accountability, to
    ensure that what is due to workers are given to them.

    He urged the state governments to block all forms of leakages that may bar them from paying workers what is due to them.

    Wabba expressed optimism that government would take all
    necessary steps at ensuring that the new minimum wage is paid. (NAN)

  • Federal allocation may cease sooner than expected – Oyetola

    Gboyega Oyetola, the Osun Governor-elect has urged civil servants to work hard and improve the state’s Internally Generated Revenue (IGR).

    Oyetola said that the monthly allocations from the federation account to states may cease sooner than expected.

    Oyetola made the remarks during a special thanksgiving organised in his honour by civil servants on Thursday in Osogbo.

    He said there was the need for civil servants, who are the engine room of government to drive the state to an economic sustainable status.

    Oyetola, who expressed gratitude to the entire workforce in the state for voting for him massively during the governorship election, urged them to put more efforts in generating more IGR to make the state financially sufficient.

    He said increase in IGR would enable the government to carry out its statutory function of payment of workers’ salaries and other emoluments.

    The governor-elect commended civil servants in the state for their efficiency, sacrifices and support for the outing administration.

    Oyetola maintained that his administration would redouble efforts at further smoothening relationships between the government and workers.

    He however urged the civil servants to support his administration wholeheartedly, saying their services and support is too important to be ignored.

    In her remarks, Mrs Titi-Laoye Tomori, the outgoing Deputy Governor, described the governor-elect as ”humble, amiable, gentle, brilliant and approachable.”

    Earlier in his remarks, the state Head of Service, Dr Oyebade Olowogboyega, said the programme was organised to express workers’ solidarity and support for the incoming government.

    Oyetola, an All Progressive Congress (APC) won the Sept. 22 governorship election in the state.

    He scored 255,505 votes to defeat Sen. Ademola Adeleke of the Peoples Democratic Party (PDP), who polled 255,023 votes.

    Gov. Rauf Aregbesola is expected to hand over to Adegboyega, on Nov. 26. (NAN)

  • ‘NNPC responsible for low federal allocation’

    The Bayelsa State government yesterday blamed the Nigeria National Petroleum Corporation (NNPC) for dwindling federal allocations to states.

    The government said despite all progressive economic indices, revenue accruing to states continue to reduce instead of improving.

    Deputy Governor Rear Admiral John Jonah insisted there was no reason why the allocation should not improve.

    Jonah spoke while presenting the income and expenditure profile of the state for une and July at the Government House, Yenagoa.

    The deputy governor said states were worried that while every analysis showed improvement in revenue generation, the NNPC continued to present a position contrary to the Governors’ Forum’s with regard to remittances.

    Jonah observed that crude oil exploitation improved following reduction in militancy in the Niger Delta just as the naira was devalued by 100 per cent, which ought to have resulted in improved federal allocation.

    Jonah said:  “So, even if you are not increasing, the thinking of the Governors’ Forum is that as long as you have devalued, you can compensate for the loss of crude oil exported. Now the oil increased, we are always the victim. Niger Delta violence, but now they are out there enjoying, having a field day. Nobody disturbs.

    “Why should money be reducing while all the variables you can identify are very favourable and increasing. Till now, as far as I am concerned, they have not given us an answer.”

    The deputy governor said since Nigerians started criticising the subsidy payment, NNPC changed the name.

    He said the NNPC claimed Nigeria consumed 60 million litres of petrol per day while the Department of Petroleum Resources (DPR) said 36 million litres were being consumed per day.

    But he noted the NNPC paid subsidy on 60 million litres, adding that on the issue of smuggling, the entire border filling stations had a capacity of four million litres.

    He argued that even if Nigeria was supplying neighbouring countries, it could not be up to 10 million litres.

    “The Nigeria Customs said  that we we are consuming 38 per cent. Of course they pay subsidy on something that does not exist. As far as Governors’ Forum is concerned, they are paying subsidy and they pay it from Excess Crude Account. These are the things that make our 13 per cent go down.

    “We want to urge people to investigate the figures put out by the NNPC as they are not ghosts.”

    He faulted people who said Niger Delta states had so much money without finding out what accrues to other states and councils.

    Jonah said the NNPC could not answer questions raised by the Governor’s Forum, the Customs and the DPR on petrol consumption figure.

    The deputy governor said as a result, the state has to make do with the balance of N4.14 billion for June and July.

  • Ugwuanyi: we paid June salaries without federal allocation

    Enugu State Governor Ifeanyi Ugwuanyi has said the government paid June salaries without receiving the Federal allocation.

    He added that his administration has been paying salaries regularly despite assuming office when the economy was in severe recession.

    The governor spoke at an endorsement rally for his re-election by the people of the “Ancient Opi N’Ato Kingdom” in Opi, Nsukka Local Government Area.

    Ugwuanyi attributed his administration’s success to God’s grace and commitment to the people’s wellbeing.

    He reassured the people that his administration will continue to cater for them and initiate programmes that would address their needs.

    Governor Ugwuanyi thanked the people for their support, solidarity and endorsement, and urged them to embrace peace and unity for rapid development.

    “What is paramount to us is good governance and development of the rural areas,” he stressed.

    President-General of the Federated Opi Town Union Sam Ugwuoti hailed Ugwuanyi for his works, especially “the beautification and rehabilitation of the Opi/Nsukka road into a modern dual-carriageway with street lights”.

    Ugwuoti assured the governor that the people of Opi “will continue to support you” and come 2019, God will still keep you in your seat as the governor”.

  • Bayelsa govt decries decline in federal allocation to states

    Bayelsa State government yesterday decried declining revenues from the federation account.

    Presenting the income and expenditure profile of the state for April in Yenagoa, Deputy Governor Gboribiogha John Jonah said without reforms, Bayelsa could become a failed state.

    A statement by the Chief Press Secretary to the governor, Mr. Francis Ottah Agbo maintained that the deputy governor decried the drastic reduction of federal allocation to states in recent times, despite improvement in all critical indicators in the oil industry.

    Rear Admiral Jonah, who noted that Bayelsa’s allocation reduced by over N700 million in March, observed that accruals to the federation account in recent times had defied all mathematical predictions.

    His words: “Funding is a very difficult thing in this country now. Recall that between March and April this year, our income reduced by over N700 million and it is still threatening.

    “And the strange thing about this reduction at the federal level, is that the accruals to the federation account has defied all mathematical predictions. You can no longer calculate it sitting down here.”

     

     

     

     

     

     

     

     

  • Amosun rues ‘unfair’ Federal allocation to Ogun

    The Ogun State government yesterday said Federal Government’s revenue allocation sharing formula has not been fair to the state.

    It noted that what the state collected as allocations was not commensurate with the quantum of what it contributed to the Federation Account.

    Governor Ibikunle Amosun addressed reporters in Abeokuta, the state capital, ahead of next week’s fourth Investors’ Forum of the state.

    The governor said the state generated about 34 per cent of non-oil revenue but ranked 26th in the sharing formula of allocation from the Federation Account.

    He said 304 companies had opened shops in the state since the beginning of his administration seven years ago with a minimum investment of $50 million.

    According to him, 148 companies with investments capital ranging from $200 million to $2 billion were among those that berthed in Ogun State.

    Amosun said he supported the restructuring of the country in a way that each state would receive allocations on the basis of the percentage of its contribution to the Federation Account.

    The governor also expressed dissatisfaction with the statistics released by the Federal Inland Revenue Service (FIRS) on personal income tax, saying his administration would forward a protest letter to the agency.

    He said the state had become an industrial hub of the country, adding that its target was for the state to become the hub of Africa.

    According to him, this year’s edition of the Investors’ Forum will focus on agriculture and its value chain, industry and technology.

     

     

     

  • Federal allocation drops by N17.38b

    Federal allocation drops by N17.38b

    Allocation from the Federation Account available for sharing this month by the tiers of government reduced by N17.38 billion compared to what was shared last month.

    The allocation for December last year, distributed last month was N387.77 billion compared to the N370.38 billion distributed yesterday for January.

    The decline in the allocation was attributed to the drop in oil prices from $43.4 to $39.04 which resulted in   revenue loss amounting to $22.55 million.

    Finance Minister Mrs Kemi Adeosun told reporters at the end of the monthly Federation Account Allocation Committee (FAAC) meeting in Abuja last night that the drop in the funds distributed was caused by several reasons including oil production shut- in and shut downs;  continued drop in oil price and the diversion of Federation Account revenue to fund the Joint Venture Cash (JVC) call commitment to oil majors in the production of crude minerals.

    She confirmed that as a result of the continued oil price slump and inability of government to meet the JVC cash call commitment, government was working a modified carrier strategy to raise funds from the debt market to fund the commitments as it could no longer be guaranteed from oil proceeds.

    To reduce the negative impact of cash call obligations on the Federation Account, Mrs Adeosun said the Nigeria National Petroleum Corporation (NNPC) is proposing a Modified Carry Arrangement (MCA) which would be more beneficial to the country because of the continuous decline in oil prices.

    Details of the agreement she said, is being worked out and would be presented to the National Economic Council (NEC) for approval.  “The Minister of State Petroleum Resources who also doubles as the Group Managing Director of the NNPC has been mandated to explore this strategy after which it would receive  NEC’s blessing for activation,” she said.

    Giving a breakdown of the allocation to the three tiers of government, the minister said for statutory allocation, the Federal Government received N137.47 billion representing 52.68 per cent after deducting the cost of collection to revenue generating agencies of the Nigeria Customs Service (NCS) and the Federal Inland Revenue Service (FIRS).

    Also from the statutory allocation, the states pocketed N69.72 billion or 26.72 per cent, local governments N53.75 billion or 20.8 per cent while N22.38 billion was allocated to the oil producing states as 13 per cent derivation principle.

    From Value Added Tax (VAT) revenue, the Federal Government received N10.04 billion or 15 per cent, states N33.46 billion or 50 per cent while local governments received N23.42 billion or 35 per cent.

    With regard to revenue, the finance minister said: “Gross statutory revenue of N290.96 billion received for the month of January was lower than the N315.01 billion received in the previous month of December by N24.05 billion.”

  • Ondo can thrive without federal allocation, says aspirant

    Ondo can thrive without federal allocation, says aspirant

    ondo State All Progressive Congress (APC) governorship aspirant Akinyinka Akinnola has said the state can survive without federal allocations, if proper use is made of its huge human and material resources and its strategic geographical location.

    Akinnola, an engineer with over 30 years’ experience in manufacturing and infrastructural development, said, if elected as governor, he would concentrate on industrialisation.

    He said: “My own task is to embark on industrialisation of Ondo state on a scale never seen before in this country. Ondo state produces over  40 percent of the cocoa from Nigeria and of course we have timber and vast land for agricultural development.”

    Akinnola added: “I shall concentrate the state’s resources first on these areas and ensure a calendarised programme that will encourage in-situ processing and thereby adding additional value to these items. Eventually raw materials  taken out of Ondo state without any value addition will attract heavy taxation.

    “This will encourage the setting up of industries and the resultant creation of employment. We shall develop and deploy an efficient inspection and monitoring mechanism for this . Also, Ondo  state has a comparative advantage for the setting up of location positive industries. What is meant by location positive industry is whereby the raw materials are domiciled within the state as a natural resource. We have the glass sands  in Okitiputa, we have iron ore in the Akokos, we have granites in the Iwaro area and so on and so forth. We will seek for private public partnerships for the development of these resources also with the caveat of calenderised value addition.

    “We shall also take advantage of our geographical location and attributes. The ancient city of Owo and the  city of Ore are respectively key gateways to the Northern and eastern part of this country respectively. We shall invest heavily in developing these areas  as both transit and distribution points for goods, providing such infrastructure and services to encourage warehousing and  inland port activities. All these shall create further employment and shall form a basis for government revenue through taxation.

    “Describing Ondo as a coastal state, he said. “Traditional  commercial water transport routes ( from the colonial era) to  Lagos shall be  revisited  and developed as a means of getting produce out of Ondo more economically and safely. The whole riverine area is prime for a major commercial fishing and fisheries  enterprise and  sea salt production. These are just a few of the programmes we shall be looking at.”