Finance Minister, Mrs Kemi Adeosun, on Tuesday, revealed that the Federal Government, the 36 states and local governments shared a total of N510.270 billion as revenue allocation for August 2016. The figure was N16.44 billion higher than N493.828 billion shared in July.
Giving a sectoral breakdown of funds available for distribution after the meeting of the Federation Accounts Allocation Committee (FAAC) in Abuja, Adeosun explained that the improvement in allocation was as a result of higher revenue collection, especially from the Federal Inland Revenue Service (FIRS). She, however, added that the money included all revenue generated, 13 per cent derivation for oil producing states and deductions to Customs and other agencies.
She said the amount budgeted for the the three tiers of government including the oil producing states in August stood at N374.093 billion, while N303.722 billion was the actual money distributed.
“The distributable statutory revenue for the month is N315.045 billion. The sum of N6.330 billion was refunded by NNPC to the Federal Government”, she stated.
The Finance Minister, who doubles as the FAAC Chairman also revealed that the balance of Nigeria’s excess crude oil account was $2.91 billion.
“The net statutory allocation for August was N303.722. That figure was realised after all mandatory deductions like NNPC subsidy, transfer to domestic ECA, 7 per cent collection from NCS, 4 per cent collection from DPR among others.
“For the month of August, the gross revenue available from Value Added Tax was N75.962 billion as against N66.987 billion distributed in July, resulting in the increase of N8.975 billion. Crude oil export volume increased by 2.2 million barrels in May 2016, despite the brief force majeure declared at Qua Iboe and Bonny Terminals and a subsisting force majeure at Forcadoes terminal.”
The Finance Minister added that the Governors’ Forum made a presentation to the ministry where they pledged to pay salaries promptly as a way of stimulating the economy.
She however said a consultant will be appointed to monitor the states’ compliance to fiscal sustainability.