The Federation Accounts and Allocation Committee (FAAC) at its meeting shared the total sum of N821.863 billion as revenue for the month of June, 2018, between the Federal, States and Local Government Areas.
In a communiqué issued by the Sub- Technical Committee of Federation Accounts Allocation Committee (FAAC), Office of the Accountant-General of the Federation, the gross statutory earning received for the month is N694.672 billion and is higher than N575.475 billion received in the previous month by N119.197billion.
The shared amount comprise the Month’s Statutory distributable revenue of N694.672 billion, the Value Added Tax of N85.342billion and The Excess Gain from the Forex Equalization Account of N41.848 making up the sum of N821.863 billion.
Accordingly, from Net Statutory Allocation, the Federal Government received N283.540 billion representing (52.68%); States received N143.815 billion (26.72%); Local Government Councils received N110.876 billion representing (20.60%); while the Oil Producing States received N37.408 billion as 13% derivation revenue.
Meanwhile, FIRS, Nigeria Customs Service and DPR received the sum of N22.446 billion as their cost of collection and FIRS refund. There was also N100 Billion transferred to the Excess Crude Account.
Furthermore, from the Revenue available from the Net Value Added Tax (VAT), Federal Government received N12.289 billion (15%); States received N40.965 billion (50%) while the Local Government Councils received N28.675 billion (35%).
The Communique further explained that there was an increase in the average price of crude oil from $65.98 to $667.93 per barrel and an increase in export sales of 1.42 million barrels which resulted in increased revenue from Export sales of $101.64 billion.
It further stated that other issues which negatively affected the Crude oil production were shut-ins and shut-downs of pipelines for maintenance and for repairs. Furthermore, significant increases were recorded in Companies Income Tax (CIT ) and Oil Royalty while revenues from Import Duty, and Value Added Tax (VAT) decreased considerably in the month under review.
Meanwhile, the Minister of Finance, Mrs. Kemi Adeosun briefed the Committee on the update on the last deadlocked FAAC Meetings of the previous month, explaining that Mr. President has intervened on the matter.
She said that President Buhari directed that a new reporting template for FAAC be developed by the joint Committee of the Federal Ministry of Finance, Office of the Accountant-General of the Federation, the Nigeria National Petroleum Corporation and representative of the States, to bring about more transparency and accountability in the reporting of NNPC revenue.
Furthermore, Mrs Adeosun noted that the current reporting template has not been reviewed over a long period of time, describing the proposed template as a landmark and far-reaching reform.