FG Receives N263.28bn From FAAC Allocation In Feb – NBS

The National Bureau of Statistics ( NBS ), says the Federal Government received a total of N263. 28 billion from the N635.55 billion Federation Account Allocation Committee ( FAAC ) disbursed to three tiers of government in February.

The NBS made this known in FAAC for February 2018 Disbursement data posted on the bureau’s website.

The states received a total of N172.87 billion and Local governments received N129.99 billion.

The bureau, however, stated that the amount disbursed to three tiers of government was from the revenue generated in January.

According to NBS, the amount disbursed comprised of N538.91 billion from the Statutory Account and N96.65 billion from Valued Added Tax ( VAT ).

“The sum of N52.04 billion was shared among the oil producing states as 13 per cent derivation fund.

“The revenue generating agencies such as Nigeria Customs Service, Federal Inland Revenue Service and Department of Petroleum Resources received N4.08 billion, N6.29 billion and N4.47 billion respectively as cost of revenue collections.”

Meanwhile, the breakdown of revenue allocation distribution to the Federal Government of Nigeria ( FGN ) revealed that N223.42 billion was disbursed to the FGN consolidated revenue account in the month.

It showed N4.73 billion as share of derivation and ecology, and N2.37 billon as stabilisation fund.

The breakdown further showed that N7.95 billion was shared for the development of natural resources and N5.62 billion to the Federal Capital Territory ( FCT ), Abuja.

NAN

FAAC Ends Fight, Allocates N647bn To FG, States, LGs

The Federation Accounts Allocation Committee has put asides the revenue crisis that made it impossible to share the statutory allocation on Tuesday to pave way for the disbursement of funds to the three tiers of government.

The meeting had ended in a rift on Tuesday following a disagreement about the revenue figures remitted into the federation account by the Nigerian National Petroleum Corporation for sharing by the three tiers of government.

But late last night, the Minister of Finance, Mrs Kemi Adeosun intervened by call back the meeting on Wednesday.

At the reconvened meeting on Wednesday, held at the headquarters of the ministry of finance which was presided over by Adeosun, the committee distributed the sum of N647.39bn to the three tiers of government.

Out of this amount, the Federal Government received N270.8bn, states got N173.75bn and the 774 local government councils were allocated a total amount of N130.9bn.

The committee also allocated the sum of N57.35bn to the oil producing states based on the 13 per cent derivation principle while N14.55bn was returned to the revenue generating agencies as coat of revenue collection.

Kwara Receives N2.5bn From FAAC August Allocation

Kwara Government on Wednesday said it received N2.5 billion as its federal allocation for August as against the N3.6 billion it received in July.

The State Commissioner for Finance, Alhaji Demola Banu, said in a statement in Ilorin that the allocation was N1.1 billion lower than that of July.

Banu said the money was made up of N1.7 million as statutory allocation, while Value Added Tax (VAT) attracted N761 million.

He also said that the 16 local government councils in the state got N1.8 billion as allocation for August as against the N2.6 billion they received in July.

Banu said that out of the N1.8 billion, the councils got N1.424 billion as statutory allocation, while Value Added Tax attracted N432 million.

Revenue Drops As FG, States, LGs Share N467.8Bn In August

The federal government, states and local governments shared N467.8 billion in August, the Minister of Finance, Kemi Adeosun, said on Tuesday.

This indicates a shortfall in revenue by N184.2 billion from N652 billion shared in July.

Mrs. Adeosun, who was represented by the Permanent Secretary in the ministry, Mahmoud Dutse, said this at the end of the monthly Federation Account Allocation Committee, FAAC, meeting on Tuesday in Abuja.

She said the shared amount was inclusive of Value Added Tax, VAT.

The Gross statutory revenue was put at N387.31 billion, while the VAT was N80.53 billion.

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

She, however, said oil revenues recorded an increase due to rise in export sales by $62 million.

“The increase in the average price of crude oil from $50.27 per barrel to $51.05 per barrel and a significant increase in export volume by 1.20 million barrels resulted in increased revenue from export sales for the federation by $62 million.

“Despite the increases, there were issues of leaking flow lines, shut-ins and shutdowns at terminals for maintenance.”

Giving a breakdown of the allocation, Mrs. Adeosun said the federal government received N193.04 billion, states N130.69 billion and local governments N98.01 billion.

She also said N31.59 billion was given to the nine oil producing states as their 13 per cent derivation.

She put the balance in the Excess Crude Account, ECA, at $2.3 billion.

Mahmud Yunusa, Chairman, Forum of Finance Commissioners, said it was time for the states to begin to look inwards to shore up their revenue.

“States will explore other options of revenue to depend less on revenue from the centre.

“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.”

He said reforms were currently on in the states to optimise the collection processes for revenue, adding that he was optimistic it would reduce dependence in revenue from the centre to about 50 to 60 per cent.

(NAN)

 

How Osun Spent 2nd Tranche Of Paris Refund

By Ishola ‘Layinka
The State Government of Osun has released figures explaining in details how it disbursed the N6.314b received from the Federal Government as the second tranche of the Paris Club Refund given to states in the federation.
In an infograph released by the government, the state paid out N5,998,493,302.05 out as salaries, pensions, leave bonuses and other emoluments to its workforce above recommended figures by labour unions in the state. Recall the state through a Revenue Apportionment Committee headed by Comrade Hassan Sunmonu regularly meet with the unions to apportion revenue in the state.
Giving the breakdown, N503,908,457.4 was paid as Leave Bonuses to Civil Servants, N3,768,669,258 was used to pay workers’ salaries as well as clear July and August half-salary arrears of 2015 owed senior cadre of workers in the state.
The State Government of Osun in the infograph said N934,841,306 was used to pay Local Government Workers as a total sum of N791,074,280.8 went to the pockets of the pensioners that retired from the civil service.
It would be recalled that President Muhammadu Buhari in November 2016, approved the partial refund of long standing claims by state governments in respect of over-deductions from their Federation Account Allocation Committee, FAAC, for external debt service between 1995 and 2002.
The debt service deductions were in respect of the Paris Club, London Club and Multilateral debts of the Federal and State governments, which Nigeria reached a final agreement for debt relief with the Paris Club in October 2005.
Since the first tranche of the refund was released in November 2016, Osun specifically disbursed the payment by using all the refund to settled workers arrears in the state.
Although, the disbursements were premised on the condition that a minimum of 50 per cent would be applied for the payment of workers’ salaries and pensions but Osun raised the ceiling to more than
.80 per cent.
The government however expressed its determination to fulfill all its financial obligations as soon as the state’s economy improves.

FG, States, LGs Share N652bn For July

A total of N652.229 billion has been distributed as Federal Allocation for the month of July, 2017 to the Federal Government, State Governments and Local Government Councils.

The communiqué issued by the sub-Committee of Federation Accounts Allocation Committee (FAAC) of the Office of the Accountant-General of the Federation, at the end of the meeting held Wednesday in Abuja, indicated that the gross statutory revenue received for the month is N570.584 billion and is higher than the N317.562 billion received in the previous month by N253.022 billion.

The shared amount comprised the Month’s Statutory distributable revenue of N570.584 billion and the Value Added Tax of N81.645 billion.

From Net Statutory Allocation, the Federal Government received N274.893 billion representing (52.68%); States received N139.429 billion (26.72%); Local Government Councils received N107.494 billion representing (20.60%); while the Oil Producing States received N29.894 billion as 13% derivation revenue.

Furthermore, from the Revenue available from the Value Added Tax (VAT), Federal Government received N11.757 billion (15%); States received N39. 190 billion (50%) while the Local Government Councils received N27.433 (35%).

The Communique further explained that there was a decrease in the average price of crude oil from $55.18 to $50.27 per barrel and a significant decrease in export volume by 3.20 million resulted in decreased revenue from export sales revenue increased by about $183.68 million.

There was also shut-in and shut-down of pipelines due to the activities of vandals as well as for maintenance which impacted negatively on production.

Furthermore, the Force Majeure declared at the Forcados terminal since February, 2016 was still in place.

Significant increases were also recorded in Companies Income Tax being the peak period for its collection.

EDITORIAL: States And The Paris Club Refund

With the release of second tranche of Paris Club Loan Refunds on Tuesday, the Federal Government took another big step to relieve the states of their lingering insolvency.  Announcing the release, Director of Information, Federal Ministry of Finance, Salisu Dambatta, confirmed that N243.79bn had been released to the 36 state governments and the Federal Capital Territory bringing the total so far disbursed to N760.17bn. Just like the first tranche, the five states of Akwa Ibom, Bayelsa, Delta, Kano, and Rivers took the lion share of 20 percent with N10bn each. The state of Osun got N6.31bn.

Not surprisingly, the rumour mill has literally swung into overdrive with mischief-makers bandying all manners of figures on the amount released, despite the publication of the figures in major newspapers.  The idea obviously is to force the hands of Governors to do the bidding of special interests often at to the detriment of the collective interests. Before now, the Governors were accused of either taking the money under the cover of darkness even when no kobo had been released, or stealing a huge chunk of it even when no concrete proof is on ground. Such is the nation these days – such that truth is not only sacrificed on the altar of emotions but also elasticated.

Given the exaggerated expectations from the citizens particularly the organised labour which has been at the forefront of the agitations, we find it necessary again to restate what the refund is all about –what it is meant to cater for from what is not.

Nigerians would recall the country’s exit from the Paris Club of Debtors in 2005. Shortly after the celebrated exit, it emerged that most states had overpaid their share of the loans,there was a clamour to have full refund of the excess paid.  Although the clamour predated the current administration, it reached its crescendo as a result of the crushing insolvency which the states found themselves courtesy of the current economic recession. With meaningful developmental activities in the states virtually grinding to a halt, President Muhammadu Buhari magnanimously ordered the refunds to be made to relieve the states of their financial burden particularly that of salaries and pensions.

Therefore, the refund, far from being a cure-all pill, was a sort of palliative to augment the shortfalls brought on by the shrinking accruals into the federation account. To that extent, the expectations that it would address long-term issues of fiscal insolvency are not only misplaced but baseless.

 Of course, we understand the obligations of the Governors to clear outstanding arrears of workers and pensioners both as a strategy to put life back into the economies of the states and also to relieve the pains of the distraught workers. The question really is whether the Paris Club refund or any windfall for that matter can provide the kind of relief being sought by the workers on a sustainable basis given that the problems are of a structural nature. If, as in this case, the answer is negative, the Governors are right to press for understanding by the workers in their efforts to chart a sustainable way out of the current economic crisis. After all, the refunds will come and go leaving the task of weaning the states off their dependence on federal allocations behind for the governors to contend with.

Much as the workers would rather have their arrears upfront, we counsel them to see reason with the Governors in their resolve to devote a sizeable chunk of the loan refunds on capital projects to guarantee their future as indeed those of the generations to come.

Nigeria’s 36 States Share N143.6 Billion In September

The 36 states got N143.6 billion from the federation account in September as their share of distributable revenue generated for the month.

The breakdown shows in a report obtained by the News Agency of Nigeria from a source at the office of the Accountant-General of the Federation in Abuja on Sunday.

The funds are usually shared the following month; for example, revenue generated in January is shared in February; thus, the revenue shared was actually generated in August and shared in September 2016.

The key agencies that remit funds into the federation account are the Nigerian National Petroleum Corporation, NNPC, the Federal Inland Revenue Service and the Nigerian Custom Service.

At the Federation Account Allocation Committee, FAAC, meeting in September, federal, states and local governments shared N516 billion as against the N530 billion that was shared in August.

The report showed that the amount distributed included the Gross Statutory revenue, Value Added Tax, exchange gain, N35 billion excess Petroleum Profit Tax and 13 percent derivation to oil producing states.

The oil producing states are Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers.

The report showed that before distribution, state liabilities were deducted.

The liabilities include an external debt of N2.9 billion, contractual obligations of N10.48 billion and other deductions amounting to N16.9 billion.

The report showed that other deductions covered National Water Rehabilitation Projects, National Agricultural Technology Support, Payment for Fertilizer, State Water Supply Project, State Agriculture Project and National Fadama Project.

To sum it up, here is what the 36 states got after all deductions were made.

Abia N3.01 billlion, Adamawa N3.14 billion, Cross River N2.04 billion, Ekiti N2.16 billion, Edo N2.54 billion, Kaduna State N4.23 billion, Kano State N5.2 billion, Lagos State N7.92 billion, Rivers N9.05 billion, and Zamfara N2.58 billion.

Delta N7.39 billion, Anambra N3.43 billion, Benue N3.37 billion, Borno N3.9 billion, Ebonyi N2.99 billion, Enugu State N3.34 billion, Gombe State N2.61 billion, Nasarawa State N2.92 billion, Imo N2.97 billion and Kogi N3.39 billion.

Yobe got N3.29 billion, Taraba N2.89 billion, Sokoto State N3.62 billion, Plateau N2.31 billion, Oyo State N3.53 billion, Osun N868.9 million, Ondo N4.18 billion, Ogun N2.16 billion, Niger N3.49 billion and Kebbi N3.36 billion.
Also, Katsina State got N4 billion, Bayelsa N7.6 billion, Bauchi State N3.52 billion, Jigawa N3.82 billion, Kebbi N3.36 billion and Kwara N2.77 billion.

The report also showed that the Federal Capital Territory got N4.7 billion from the Federal Government’s share of the distributable revenue in September.

The FAAC committee is made up of commissioners of finance and Accountants-General from the 36 states of the federation; the Accountant General of the Federation, and representatives from the NNPC.

Others are representatives from the Federal Inland Revenue Service; the Nigerian Custom Service; Revenue Mobilisation, Allocation and Fiscal Commission as well as the Central Bank of Nigeria.

The federation account is currently being managed on a legal framework that allows funds to be shared to the three tiers of government under three major components.

These components are the statutory allocation, Value Added Tax distribution and allocation made under the derivation principle.

(NAN)

FG, State Governments, Local Governments Share N299.7bn For March

The cash shared for March, given out yesterday after the Federation Accounts Allocation Committee (FAAC) meeting, dropped significantly to N299.747 billion from the N338.765 billion shared for February.

The shared amount is the lowest in over five years.

But the states got a relief because of the decision of President Muhammadu Buhari that federal government deductions should be shelved this month.

Permanent Secretary of the Federal Ministry of Finance Mahmud Dutse announced that the Federal government got N109.113 billion; state governments (N55.344 billion) and Local Governments (N42.668 billion). Oil producing states received N19,750 billion as 13 per cent derivation.

An amount of N61. 665billion was shared from Value Added Tax (VAT) proceeds out of which the Federal Government got N9.250 billion; States (N30.833b) and local governments (N21.583b).

The permanent Secretary noted that the statutory revenue of N232. 619 billion received for the month was lower by N37.880 billion to the N270.499 received in the previous month.

The fall in revenue he said, was due to shut-in and Shut-down of oil production for repairs and maintenance which continued during the period.

Dutse added that there was a slight increase in production of crude oil in December 2015 but the resulting income was marginal due to a 10 per cent drop in crude oil prices.

The drop in the average price of crude oil from $43.40 in November to $39.04 in December, 2015 resulted in revenue loss of $22.55 million. Another reason for the fall in the FAAC revenue, according to Dutse, “is the significant decline in incomes from Petroleum Profit Tax and Companies Income Tax.”

The sum of N6.330 billion was refunded by the Nigeria National Petroleum Corporation (NNPC) to the Federal government and there was an exchange gain of N2.894 billion which was proposed for distribution.

He said the balance in the Excess Crude Account (ECA) still stands at $2.259 billion.

FAAC Shares N387.7b Among Federal, States, Local Govts

The three tiers of government yesterday shared N387.7 billion for the month of December last year at the end the monthly Federation Accounts Allocation Committee (FAAC) meeting in Abuja.

The amount shared represents an increase of N17.88 billion more than the N369.8 billion shared for the month of November.

Addressing reporters at the end of the meeting, Permanent Secretary, Federal Ministry of Finance, Alhaji Mahmoud Isa-Dutse said the money was distributed from  statutory allocation-N315.01 billion; Value Added Tax-N62.07 billion; exchange gain-N4.35 billion; and refund made by the Nigeria National Petroleum Corporation (NNPC)for debt owed the Federation Account-N6.33 billion.

From the statutory allocation, the Federal Government pocketed N147.56 billion after deducting the cost of collection, states received N74.84 billion and local governments went away with N57.7 billion.

From VAT, the Federal Government got N8.93 billion representing 15 per cent of the total, states N29.79 billion or 50 per cent and local governments-N20.85 billion representing 35 per cent.