The Nation Newspaper

Tag: Federation Accounts Allocation Committee (FAAC)

  • Fed Govt, states, local govts share N610.368b

    The Federation Accounts Allocation Committee (FAAC) has shared N610.368 billion federal revenue generated last month to the three tiers of government.

    The Accountant-General of the Federation (AGF), Ahmed Idris,  said approval is being awaited from the Minister of Finance for additional N50 billion from the Foreign Exchange Equalisation Account, which will be distributed accordingly.

    He spoke at the end of the Federation Account Allocation Committee (FAAC) meeting in Abuja, yseterday, stating that the balance in the Excess Crude Account (ECA) currently stands at $249 billion.

    A communique issued by the FAAC indicates that from the N610.368 billion, the Federal Government received N252.412 billion, states got N170.541, while the local government councils received N127.923 billion. The Oil Producing states received N41.992 billion as 13 per cent Derivation Revenue and the Revenue Generating Agencies received N17.500 billion as cost of revenue collection.

    Idris said N505.246 billion was received in January, saying this was lower than the N547.462 billion realised in the previous month by N42.216 billion.

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    The gross revenue from Value Added Tax (VAT) was N104.468 billion as against N100.760 billion distributed in the previous month, resulting in an increase of N3.708 billion. From the total gross revenue from VAT, the Federal Government received N15.044 billion, the states got N50.145 billion,  local government councils received N35.102 billion, while the Revenue Generating Agencies received N1.178 billion.

    The communique stated that for last month, crude oil sales increased by 2.4 million barrels, resulting in  $149.94 million increase in revenue, despite a drop in price of crude oil from $81.06 to $75.00 per barrel.

  • FAAC shares N610.368bn to FG, States and LGs in February 2019

    Following the conclusion of the presidential and National Assembly elections, the Federation Accounts Allocation Committee (FAAC) has shared to the three tiers of government a total of N610.368 billion federal revenue generated in the month of January 2019, but shared in February 2019.
    The Accountant General of the Federation (AGF), Ahmed Idris, while briefing the press at the end of the Federation Account Allocation Committee (FAAC) meeting in Abuja, Wednesday, said approval is being awaited from the Minister of Finance for additional N50 billion from the Foreign Exchange Equalization Account, which will be distributed accordingly.
    The AGF also disclosed that the balance in the Excess Crude Account (ECA) currently stands at $249 billion.
    A communique issued by the Federation Account Allocation Committee indicates that from the N610.368 billion, the Federal Government received N252.412 billion, the States received N170.541, the Local Government Councils received N127.923 billion. The Oil Producing States received N41.992 billion as 13% derivation revenue and the Revenue Generating Agencies received N17.500 billion as cost of revenue collection.
    For the month of January 2019, the gross revenue of N505.246 billion was received in the month of January 2019. This was lower than the N547.462 billion received in the previous month by N42.216 billion.
    The gross revenue from Value Added Tax (VAT) was N104.468 billion as against N100.760 billion distributed in the previous month, resulting in an increase of N3.708 billion. From the total gross revenue from VAT, the Federal Government received N15.044 billion, the States received N50.145 billion, the Local Government Councils received N35.102 billion and the Revenue Generating Agencies received N1.178 billion.
    The communique stated that for the month of January 2019, the federation crude oil sales increased by 2.4 million barrels, resulting in increased federation revenue by $149.94 million despite a drop in price of crude oil from $81.06 to $75.00 per barrel. In the month under review, oil royalty, import and excise duties increased substantially while Companies Income Tax (CIT) while Petroleum Profit Tax (PPT) decreased marginally.

  • FAAC: Kwara gets N3.9b for November

    The Kwara State Government will receive N3.9 billion from the Federation Accounts Allocation Committee (FAAC) for the month of November, 2018.

     

    The State Commissioner for Finance, Alhaji Demola Banu, said this in a statement in Ilorin on Thursday.

     

    Banu said that the state’s allocation was made up of statutory allocation of N2.889 billion, Value Added Tax of N1.006 billion and exchange rate gain of N4.425 million.

     

    He said that the 16 local governments in the state would receive N2.807 billion allocation for November.

     

    Giving a breakdown of the allocation, he said the local councils would get statutory allocation of N2.233 billion, Value Added Tax of N571 million and exchange gain of N2.9 million.

  • Customs generate N262.3bn in 11 months at Tin Can Port – Official

    Customs generate N262.3bn in 11 months at Tin Can Port – Official

    The Tin Can Island Command of the Nigeria Customs Service ( NCS ) said it generated N262.3 billion revenue between January and November.

    Mr Uche Ejesieme, the Public Relations Officer for the command said this in a statement in Lagos on Friday.

    Ejesieme quoted Mr Yusuf Bashar, the Area Comptroller in charge of the command as having made the disclosure while receiving the delegation of the Federation Accounts Allocation Committee ( FAAC ), Post-Mortem Sub-Committee.

    He said the 2017 revenue generated by the command surpassed that of N233.5 billion it generated in 2016.

    The comptroller said the visit was appropriate, considering the fact that the nation was gradually sliding out of recession and the need to sustain the tempo.

    Bashar said that the command had also made significant and steady progress in its core functions in the past 18 months.

    He said the various reforms he instituted shortly after assumption of duty include the construction of a training facility with 30 workstations for the training of the officers and other critical stakeholders.

    Bashar said that that the command had started reaping the benefits of such training in terms of the volume of revenue being generated and the level of compliance by traders, regarding the fiscal policies.

    “We recorded remarkable seizures of cocaine, valued at N2 billion according to a report handed over to us by the NDLEA.

    “We also handed over recovered stolen exotic SUVs to Interpol Nigeria for onward repatriation to U. S.

    “We also seized a cache of arms (pump action riffles totaling 2,010 which eventually necessitated the recent visit of Mr President to Turkey with other top government officials to see ways of curbing the menace,” he said.

    He suggested infrastructure upgrade (road networks to the port) scanners and other equipment, to enhance the output of the service.

    Bashar assured that the command would continue to enhance the standard of its statutory functions through commitment to duty  by its officers and men.

    Earlier, the Chairman of the committee, Dr Casimir Anyanwu, expressed delight over the achievements of the command in the past 18 months.

    He also lauded the command for the consistent progress made in revenue generation, capacity building as well as seizures.

    Anyanwu said that the primary objective of the sub-committee was to examine, across board, the accounts of the three tiers of government.

    The exercise was to ensure that all accruable revenue to the Federal Government coffers is duly accounted for.

    He said that the committee had the mandate of the Comptroller-General of Customs, retired Col. Hameed Ali, (rtd) to visit Customs commands to ascertain their strengths, weaknesses and challenges.

    Anyanwu said based on its findings during the visit, that the committee would advise the Federal Government appropriately.

    He described Tin Can Port as a major gateway to the resources of the country and very key to the Nigerian project.

    NAN

  • Mining sector generates N4.96bn in two years – RMAFC

    Mining sector generates N4.96bn in two years – RMAFC

    Mr Shettima Abba-Gana, Acting Chairman, Revenue Mobilisation Allocation and Fiscal Commission ( RMAFC ) says the mining sector was generating less than capacity due to activities of illegal mining.

    In an interview with the News Agency of Nigeria ( NAN ) on Thursday in Abuja, Abba-Gana said the sector generated only N14.9 billion between 2015 and 2016.

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    He said that the revenue accrual from the sector was not encouraging and “too low’’.

    “RMAFC believes that the revenue from the solid minerals sector is still below 20 per cent.

    “This is mainly due to the activities of illegal miners who constitutes more than 70 per cent of mining activities and do not pay tax.

    “While the price rates of the minerals in the international market keep rising, the rates of the minerals in Nigeria remained constant at lower rates.

    “Therefore, if all leakages are blocked, the sector can generate up to N500 billion,’’ he said.

    Abba-Gana also said the sector generated N16.2 billion from 2008 until date, adding that the total shared was N9.9 billion with a balance of N6.29 billion left.

    He noted that the observed variance/amount in the escrow account was N1.34 billion.

    According to him, N1.34 billion is still in the solid mineral Federation Accounts Allocation Committee ( FAAC ) sub-account in the Central bank of Nigeria ( CBN ) awaiting submission of data from Ministry of Mines and Steel Development ( MMSD ) for attribution.

    The RMAFC monitors accruals into the federation account and the disbursement of revenue from it.

  • Lack of funds: DMO stops states from borrowing

    Lack of funds: DMO stops states from borrowing

    The old practice where States had easy access to borrowing from either foreign or local borrowing windows has now been halted.

    The new Director –General of the Debt Management Office (DMO), Ms. Patience Oniha made this disclosure yesterday in Abuja when the Edo State Governor, Mr. Godwin Obaseki visited to congratulate her on her recent appointment as the new Director General of the DMO.

    Oniha said the decision was taken because there was no longer huge allocation to states at the end of monthly Federation Accounts Allocation Committee (FAAC) meetings “from where borrowed funds could be deducted, hence continuous exposure to new lines of borrowings may no longer be sustainable.”

    As a result, the component units of the Nigerian Federation have been advised to henceforth imbibe frugality and a new strategic way of fiscal plans and implementation

    Oniha lamented that it was unfortunate that oil mineral resources has continued to be the dominant contributor to the Federation Account.

    She however advising that States should “deploy new strategic thinking on how to address the financing of their already bloated debt stocks as well as how to generate funds to execute their plans aside from borrowings.”

    According to Oniha, “previously, we could rely on funds from FAAC and in addition to that we could borrow both at the Federal and at the State levels because there wasn’t a challenge. But I think the times have changed. Revenues are under severe pressures, we are still dependent on oil revenues, non-oil revenues are picking up, but that is still a journey.”

    She noted that what this “means  now, and in future, is that we need to do things so much differently, we must be more strategic in the management of public finance so the language I always use in my previous work where I was at the Efficiency Unit is that it’s no longer business as usual.”

    Oniha warned that “we can’t collect money from FAAC, borrow, continue and wait until the next month. So at various levels, we need to be more strategic and more creative in the things that we do.”

    At the Federal level Oniha said the federal government has “initiated several measures to increase non-oil revenue and control cost.”

    The DMO boss stated that “the law recognizes the States for being responsible for fiscal laws relating to the States, but we decided to partner with them in the belief that Nigeria is one project, hence we should not be looking at the center, we should be looking at the various tiers of governments.”

    As a result of the federal government’s big brother role, Oniha said the “what we did in that regards was to work with the various tiers of the states to have enabling laws , create their own debt managements and then help them work with them through training and other activities to create their own domestic debt data.”

    Regarding the states’ compliance to generating debt data, the DMO boss said “we have major challenges. At the DMO, we have done a lot with the states in terms of assisting in developing their debt data, passing debt laws leading to the establishment of Debt bureaux and so on. As we speak, we have a good understanding of the debt portfolios at the sub- national levels.”