THE Federation Account Allocation Committee (FAAC) Thursday shared the sum of N462.359 billion among three tiers of government in the month of May.
The amount was N47 billion more than N415 billion shared in the previous month. The amount shared consisted of N317.562 billion from the statutory Federation Account shared for the month; N64.812 billion from the exchange rate differential; 0.067 billion Petroleum Profit Tax (PPT) Account and N79.985 billion from Value Added Tax (VAT), while the NNPC refund was empty.
Presenting the communiqué at the end of the FAAC monthly meeting in Abuja, the Chairman of FAAC and Minister of Finance, who was represented by the Accountant General of the Federation, Mohammed Usman attributed the increase in the revenue shared for the month to increase in revenues from Companies Income Tax and Oil Royalty. However, he disclosed that the revenue in Customs and exercise duty was marginal.
He further noted that there was a slight drop in the average price of crude oil from $55.38 to $55.18 per barrel and another decrease in export volume by 1.023 million. Barrels, which reduced oil revenue by about $57.12 million. According to him, Crude oil production suffered due to leakage. Shut-ins and shutdowns at terminals for maintenance and the Force Majeure declared at Forcados Terminal since February, 2016 subsisted.
A breakdown of the allocation showed that Federal Government received a total of N147.682 billion; the states got N74.906 billion, while the Local Governments received the sum of N57.750 billion. The sum of N20.505 billion was paid to the oil producing states in the Niger Delta as 13 per cent derivation on oil revenue. From the VAT, the Federal government got N11.518 billion, states received N38.393 billion, while Local Governments received N26.875 billion.
The Minister disclosed that the Excess Crude Account currently stands at $2.303 billion. Fielding questions from newsmen at the end of the meeting, the minister explained that the NNPC refund was zero because the payment had been completed. On possibility of paying salaries before Sallah, she promised that government would do everything possible to ensure that workers are paid their June salaries on or before the Sallah break.