Tag: FAAC

  • FAAC shares N903.480bn September revenue to FG, States, LGs

    FAAC shares N903.480bn September revenue to FG, States, LGs

    The Federation Account Allocation Committee (FAAC) has shared a total of N903.480 billion September 2023 Federation Account Revenue to the Federal Government, states and Local Government Councils (LGCs).

    This is contained in a communique issued by the FAAC at the end of its October meeting held in Abuja on Tuesday.

    The communique indicated that the N903.480 billion total distributable revenue comprised distributable statutory revenue of N423.012 billion, Value Added Tax (VAT) revenue of N282.666 billion, Electronic Money Transfer Levy (EMTL) revenue of N10.989 billion and Exchange Difference revenue of N 186.813 billion.

    It stated that a total revenue of N1594.763 billion was available in the month of September 2023.

    “Total deductions for cost of collection was N54.426 billion, total transfers and refunds was N347.857 billion and savings was N289.000 billion,” the committee stated.

    It said that gross statutory revenue of N1014.953 billion was received for September, which was higher than the N891.934 billion received in August by N123.019 billion.

    It added that the gross revenue available from VAT was N303.550 billion, which was lower than the N345.727 billion available in August by N42.177 billion.

    “From the N903.480 billion total distributable revenue, the Federal Government received a total of N320.543 billion, the state governments received N287.071 billion and the LGCs received N210.900 billion.

    “A total sum of N84.966 billion (13 per cent of mineral revenue) was shared to the relevant states as derivation revenue.

    “From the N423.012 billion distributable statutory revenue, the Federal Government received N190.849 billion, the state governments N96.801 billion and LGCs received N74.629 billion.

    “The sum of N60.733 billion (13 per cent of mineral revenue) was shared to the relevant states as derivation revenue,’” it said.

    It said that the Federal Government received N42.400 billion, the state governments received N141.333 billion and the LGCs received N98.933 billion from the N282.666 billion VAT revenue.

    The communique further said that N10.989 billion EMTL was shared as follows:

    The Federal Government received N1.648 billion, the state governments received N5.495 billion and the Local Government Councils received N3.846 billion.

    “The Federal Government received N85.647 billion from the N186.813 billion Exchange Difference revenue, the state governments received N43.442 billion, and the LGCs received N33.491 billion.

    “The sum of N24.233 billion (13 per cent of mineral revenue) went to the relevant states as derivation revenue. The balance in the Excess Crude Account (ECA) was 473,754.57 dollars,” it said.

    In September, Petroleum Profit Tax (PPT) and Oil and Gas Royalties increased considerably while VAT, Import and Excise Duties, EMTL, Companies Income Tax (CIT) and CET Levies recorded significant decreases.

  • FAAC: FG, states, LGCs share N1.1trn for August

    FAAC: FG, states, LGCs share N1.1trn for August

    The Federation Account Allocation Committee (FAAC), has shared the sum of N1.1 trillion to the Federal Government, states and Local Government Councils (LGCs) for August.

    This is contained in a communiqué issued by the FAAC at its September meeting.

    The communiqué said that the N1.1 trillion total distributable revenue comprised statutory revenue of N357.398 billion, Value Added Tax (VAT) revenue of N 321.941 billion and Electronic Money Transfer Levy (EMTL) revenue of N14.102 billion.

    It also comprised Exchange Difference revenue of N229.568 billion and Augmentation of N177.092 billion.

    The communiqué said total revenue of N1.48 trillion billion was available in the month of August 2023.

    “Total deductions for cost of collection was N58.755 billion, total transfers and refunds was N254.046 billion and savings was N71 billion.

    “Gross statutory revenue of N 891.934 billion was received for the month of August 2023. This was lower than the N1.1 trillion received in the month of July by N258.49 billion.

    “The gross revenue available from VAT was N345.727 billion. This was higher than the N298.78 billion available in the month of July by N46.938 billion,’’ it said.

    It said that from the N1.1 trillion total distributable revenue, the Federal Government received N431.245 billion, the state governments received N361.188 billion and the LGCs received N266.538 billion.

    “A total sum of N26.473 billion, (13 per cent of mineral revenue) and N14.657 billion (13 per cent of savings from NNPCL), were shared to the relevant states as derivation revenue.

    “From the N357.398 billion distributable statutory revenue, the Federal Government received N173.102 billion, the state governments received N87.800 billion and the LGCs received N67.690 billion.

    :The Federal Government received N48.291 billion, the state governments received N160.971 billion and the LGCs received N112.679 billion from the N321.941 billion distributable VAT revenue,” it said.

    The communiqué said the N14.102 billion EMTL was shared among the three tiers of government.

    “The Federal Government received N2.115 billion, the state governments received N7.051 billion and the LGCs received N4.936 billion.

    “The Federal Government received N114.445 billion from the N229.568 billion Exchange Difference revenue.

    “The state governments received N58.048 billion, and the LGCs received N44.752 billion.

    “The sum of N12.027 billion (13 per cent of mineral revenue) and N0.296 billion (13 per cent of savings from NNPCL) went to the relevant states as derivation revenue,’’ it said.

    It said that from the N177.092 billion augmentation, the Federal Government received N93.292 billion, the state governments received N47.319 billion and the LGCs received N36.481 billion.

    “In the month of August, VAT, Import and Excise Duties and EMTL increased considerably while Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties recorded significant decreases.

    “The balance in the Excess Crude Account (ECA) was 473.75 million dollars.

  • Investigation: FG paid N169.4 billion as fuel subsidy in August

    Investigation: FG paid N169.4 billion as fuel subsidy in August

    An investigation has revealed that the present administration paid N169.4 billion as fuel subsidy in August to keep at N620 per litre the pump price of Premium Motor Spirit (PMS), popularly known as petrol.

    TheNewsGuru.com (TNG) recalls President Bola Tinubu announcing the removal of subsidy on petrol on May 29 when he took his oath of office as the 16th president of Nigeria, saying there was no allocation for it in the 2023 budget beyond July.

    Following Tinubu’s announcement, the Nigeria National Petroleum Company Limited (NNPCL) announced the adjustment of pump price where NNPCL filling stations were selling fuel at N537 while others were selling from N540 and above.

    According to official statistics, the Federal Government spent about N10 trillion on fuel subsidies between 2006 and 2018, and N5.82 trillion between 2021 and 2022 while it gulped N3.36 trillion from January to June 2023.

    Petrol now sells at over N600 per litre in the country and the administration said it had saved much money from the removal of subsidy, part of which was already been sent to States as palliatives.

    However, according to Daily Trust’s finding, the federal government paid N169.4 billion as subsidy in August to keep the pump price at N620 per litre.

    “If that payment was not approved, the country would have been thrown into serious crises because it was clear that the public could not bear in further depreciation in pump price, so something had to give.”

    “Everything has been done to not offset the market balance until we are able to resolve the production with Dangote refinery as well as the loans, once this is settled, we should see some stability,” a source told Daily Trust.

    According to the report, a document by the Federal Account Allocation Committee (FAAC) showed that in August 2023, the Nigerian Liquefied Natural Gas (NLNG) paid $275m as dividends to Nigeria via NNPC Limited.

    “NNPC Limited used $220m (N169.4 billion at N770/$) out of the $275m to pay for the PMS subsidy.  Then NNPC held back $55m, illegally,” the report reads.

    The revelation by FAAC effectively indicates that the subsidy is back and NNPC is now taking NLNG dividends to pay the subsidy.

  • FAAC: How FG, States, LGs shared N4.37 trillion from January to June 2023

    FAAC: How FG, States, LGs shared N4.37 trillion from January to June 2023

    The three tiers of government – the Federal, States and Local Government Councils (LGs), shared a total of N4.37 trillion from the Federation Account as statutory revenue allocations between January and June 2023.

    This is contained in the latest report by the Nigeria Extractive Industries Transparency Initiative (NEITI) on the Federation Account revenue allocations for the first half of the year.

    Dr Orji Ogbonnanya Orji, Executive Secretary, NEITI, who announced the report on Thursday in Abuja, said total distributable FAAC allocations to the three tiers of government in first and second quarters (Q2) of 2023 stood at N2.32 trillion and N2.04 trillion respectively.

    The NEITI quarterly review revealed that inflows into the Federation Account in Q2 of 2023 declined by 23 per cent which affected the distributable revenue which fell by 12 per cent when compared with the total revenue disbursed in the first quarter.

    “Each tier of government received more than N1 trillion over the six-month period,” he said.

    The report showed that a breakdown of the revenue receipts showed that the federal government received about N1.78 trillion, or 40.7 per cent, while the State governments received N1.5 trillion, or 34.5 per cent.

    According to the report, the Local government councils received N1.08 trillion or 24.8 per cent of the total distributable revenue for the period.

    It further disclosed that a comparative analysis of the total allocations on a year-on-year basis in the corresponding quarters of 2022 and 2023 showed that the distributable revenue of N4.366 trillion shared was higher by 16.7 per cent from about N4.05 trillion shared  in 2022.

    Consequently, it revealed that the allocation received by the federal government over the period under review increased by 19.8 per cent to N1.78 trillion in 2023, from the N1.48 trillion in the corresponding period in 2022.

    Similarly, the report noted allocations to the State governments grew by about 11.2 per cent to N1.42 trillion in 2023 from N1.26 trillion in 2022, while allocations to the LGs rose by 16.8 per cent to N1.08 trillion in 2023, from N926 billion in 2022.

    The increase in half-yearly allocations in 2023 was consistent with an upward trend from the previous period where the distributable revenue for the first half of the year rose by 16.7 per cent, from N3.47 trillion between January and June 2021 to N4.05 trillion in the corresponding period in 2022.

    Also , allocations to the federal, states and LGs increased across board by 8.8 per cent 26.5 per cent and 14.2 per cent respectively.

    However, compared to the same period in 2022, it said the report showed that FAAC distribution in Q2 declined in absolute value with total distributable revenue of N2.02 trillion being less by 13 per cent than about N2.16 trillion distributed in the second quarter of 2022.

    It said further analysis of the disbursements to the states showed that Delta state received the highest allocation of N102.79 billion in the second quarter of 2023, followed by Akwa Ibom’s N70.01 billion, Rivers N69.73 billion, Lagos N60.64 billion and Bayelsa N56.34 billion.

    It said the total disbursements to these five states (N359.5 billion), or 35.9 per cent of the total FAAC allocations, was more than the total allocations to the next 15 states (N349.3 billion).

    It said the cumulative allocation to the five states was also more than the share of allocation to 19 other states put together, adding that the bottom 10 states received 17.3 per cent of the revenue shared in the second quarter of 2023.

    According to the report, Nasarawa, Ebonyi, Ekiti, Gombe and Taraba states received the lowest allocations of N16.71 billion, N16.84 billion, N16.95 billion, N17.22 billion and N17.45 billion respectively.

    It said four of the five states with the highest allocations, except Lagos, received a significant share of 13 per cent derivation revenue allocated to oil-producing states.

    It said the total disbursements to these five states (N359.5 billion), or 35.9 per cent of the total FAAC allocations, was more than the total allocations to the next 15 states (N349.3 billion), while the cumulative allocation to the five states was also more than the share of allocation to 19 other states.

    It added that the bottom 10 states received 17.3 per cent of the revenue shared in the second quarter of 2023.
    It stated that the bulk of the revenues to the federation account came from remittances from the three main revenue-generating agencies.

    It listed them as the Nigeria Upstream Petroleum Regulatory Commission, the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS).

    These revenues, it explained that they came through earnings from the different revenue streams, including oil and gas royalties, petroleum profit tax, company income tax, value added tax and import and excise duties.

    “Also, revenue remittances of about N1.84 trillion in Q2 2023 came from mineral and non-mineral sources, comprising of N809 billion, or 44 per cent from mineral revenue (mostly oil and gas) and N1.03 trillion, or 56 per cent  from non-mineral sources.

    The report further revealed a huge gap between revenue disbursements from the oil and gas and solid minerals sectors, pointing out that this was a reflection of the perennial underperformance of the latter over the years.

    “In terms of debt service obligations and the impacts on states’ net allocations, the report showed that Lagos topped the list of 36 states with a total deduction of N9.03 billion in the second quarter of 2023, followed by Delta (N6.76 billion), Ogun (N6.10 billion), Kaduna (N5.63 billion), Osun (N5.60 billion and Imo (N5.51 billion).

    “Jigawa, Anambra, Nassarawa, Kebbi and Enugu States had the lowest deductions of N1.16 billion, N1.29 billion, N1.45 billion, N1.51 billion and N1.88 billion respectively.

    “The nine oil-producing states, according to the report, namely Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo and Rivers states received allocations relative to their share of the oil and gas as well as other minerals extracted from their domains,” it said.

    It projected that with efficient, prudent management and utilisation of the savings of N3.6Trillion from subsidy payment in the first six months of 2023, Nigeria’s balance of payments would be boosted as demand which was served entirely by product importation would be curtailed.

    It said the drop in demand would inadvertently, trigger a corresponding reduction in the dollar volume needed to pay for premium motor spirit (PMS), which constituted the largest single import product by value,” he said.

    The report welcomed with high expectations, the unification and the floating of the exchange rate policy recently introduced to strengthen and stabilise the economy.

    “With the average exchange rate of N713.69 to US$1, which is about 55 per cent higher than the rate of N460.52 to the dollar recorded during Q2 will significantly raise the value of export earnings remitted to the Federation Account by more than 50 per cent.

    “Also earnings from the new exchange rate through exports will also increase the value of foreign capital inflows, including investments, loans and grants,” it recommended.

    Also, the report urged the Central Bank of Nigeria to prioritise policies to stabilise the exchange rate to facilitate the effective implementation of the deregulation policy and stabilise foreign exchange-dependent inflows into the Federation Account.

  • FAAC: How FG, States, LGCs shared N966bn for July

    FAAC: How FG, States, LGCs shared N966bn for July

    The Federation Account Allocation Committee (FAAC), has shared N966.110 billion revenue to the Federal Government, States and Local Government Councils (LGCs) for July.

    This is contained in a communiqué issued at the end of FAAC meeting for August, which was chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun.

    According to the communique, the N966.110 billion total distributable revenue comprised distributable statutory revenue of N397.419 billion, distributable Value Added Tax (VAT) revenue of N271.947 billion, and Electronic Money Transfer Levy (EMTL) revenue of N12.840 billion.

    It also comprised Exchange Difference revenue of N283.904 billion.

    “In July, the total deductions for cost of collection was N62.419 billion, and total deductions for savings, transfers, refunds and tax credit cancellation was N717.962 billion.

    “The balance in the Excess Crude Account (ECA) was 473,754.57 dollars”.

    According to the communiqué, from the total distributable revenue of N966.110 billion; the Federal Government received N374.485 billion, state governments received N310.670 billion and the LGCs received N229.409 billion.

    It said that N51.545 billion was shared as 13 per cent derivation revenue to oil derivation states.

    “Gross statutory revenue of N1150.424 billion was received for the month of July.

    “This was lower than the sum of N1152.921 billion received in the month of June by N2.497 billion.

    “From the N397.419 billion distributable statutory revenue, the Federal Government received N190.489 billion, the State governments received N96.619 billion and the LGCs received N74.489 billion.

    “The sum of N35.822 billion was shared to the relevant States as 13 per cent derivation revenue,” it said.

    It said that the gross revenue available from VAT was N298.789 billion.

    “This was higher than the N293.411 billion available in the month of June 2023 by N5.378 billion.

    “The Federal Government received N40.792 billion, the State Governments N135.974 billion and the LGCs received N95.181 billion from the N271.947 billion distributable VAT revenue.

    “The N12.840 billion EMTL was shared as follows:

    “The Federal Government received N1.926 billion, the State Governments received N6.420 billion and the Local Government Councils received N4.494 billion.

    “From the N283.904 billion Exchange Difference revenue, the Federal Government received N141.278 billion, the State governments received N71.658 billion, the LGCs received N55.245 billion.

    “The sum of N15.723 billion was shared to the relevant states as 13 per cent mineral revenue,” the communique said.

    According to the communiqué, import and Excise Duties and EMTL increased considerably in July, while VAT increased marginally.

    “Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and Oil and Gas royalties recorded significant decreases,” it said.

  • Why we paid N123bn interim dividend to FAAC – NNPCL

    Why we paid N123bn interim dividend to FAAC – NNPCL

    The Nigerian National Petroleum Company Limited (NNPCL) has given reasons behind the payment of an interim dividend of N123 billion to the Federation Account Allocation Committee (FAAC) for the month of June.

    FAAC had on Thursday shared N907 billion among the three tiers of government.

    From the money shared, NNPCL contributed N81 billion as a monthly interim dividend and N42 billion as 40 percent oil Production Sharing Contract (PSC) profit totaling N123 billion.

    The NNPCL Chief Financial Officer, Mr. Umar Ajiya, said in a statement that the move was to consolidate its post-Petroleum Industry Act (PIA) 2021 status as an income-generating company.

    “This payment is in addition to compliance on payment of royalties and taxes,” he said.

    According to Ajiya, the latest development is a  departure from previous years of sleaze and wastage.

    “This will set the track for future profitability and global best practices designed to build NNPCL into a world-class oil company in the ranks of  Saudi Aramco, China Petroleum & Chemical Corp., Exxon Mobil Corp., and others.

    “The goal of Malam Mele Kyari, the Group Chief Executive Officer (GECO), NNPCL, is to set the nation’s oil company on the path of profitability and sustainable growth.

    “Since the transformation of the NNPC from a loss-making organisation pre-PIA to a robust profit-making company post-PIA, the company under Kyari has pursued global governance best practices aimed at repositioning the company for greater growth.

    “The payment to FAAC clearly shows that the company under the leadership of Kyari is moving in a positive trajectory as enshrined in the PIA.”

    On Thursday, Mr Bawa Mokwa, Director, Press and Public Relations, Office of the Accountant General of the Federation (OAGF) had stated that the N907.054 billion shared by FAAC comprised distributable statutory revenue of N301.501 billion and Value Added Tax (VAT) revenue of N273.225 billion.

    Mokwa stated that the revenue shared also comprised Electronic Money Transfer Levy (EMTL) revenue of N11.436 billion and Exchange Difference revenue of N320.892 billion.

    He said that the total deductions in June for cost of collection was N73.235 billion and total deductions for savings, transfers, and refunds was N979.078 billion noting that the balance in the Excess Crude Account (ECA) was 473,754.57 million dollars.

    Also during the FAAC meeting chaired by the Accountant General of the Federation, Dr Oluwatoyin Madein, stated that from the total distributable revenue of N907.054 billion; the Federal Government received N345.564 billion.

    In the same vein, State Governments received N295.948 billion and the Local Government Councils got N218.064 billion.

    A total of N47.478 billion of the money was shared to the relevant states as 13 per cent derivation revenue.

    Gross statutory revenue of N1,152.921 billion was received for the month of June 2023, which was higher than the sum of N701.787 million received in the month of May by N451.134 million.

    From the N301.501 billion distributable statutory revenue, the Federal Government received N146.710 billion; State Governments, N74.413 billion; and Local Government Councils received N57.370 billion.

    A total of N23.008 billion was shared to relevant States as 13 per cent derivation revenue.

    For the month of June 2023, the gross revenue available from the Value Added Tax (VAT) was N293.411 billion, this was higher than theN270.197 billion available in the month of May 2023 by N23.214 billion.

    The Federal Government received N40.984 billion, the State Governments received N136.613 billion and the Local Government Councils received N95.629 billion from the N273.225 billion distributable Value Added Tax (VAT) revenue.

    The N11.436 billion Electronic Money Transfer Levy(EMTL) was shared as follows: the Federal Government received N1.715 billion, the State Governments received N5.718 billion and the Local Government Councils received N4.003 billion.

    From the N320.892 billion Exchange Difference revenue, the Federal Government received N156.155 billion while the State Governments received N79.204 billion.

    The Local Government Councils received N61.063billion and the sum of N24.470 billion was shared to the relevant States as 13 per cent mineral revenue.

    According to the communiqué, in the month of June2023, Companies Income Tax (CIT) recorded a tremendous increase.

    Import and Excise Duties, Value Added Tax (VAT), Oil and Gas Royalties increased significantly, while Petroleum Profit Tax (PPT) and Electronic Money Transfer Levy (EMTL) decreased considerably.

  • Why Delta Assembly approved N40 billion facility for LG pensioners

    Why Delta Assembly approved N40 billion facility for LG pensioners

    The Delta State House of Assembly on Tuesday 27th June 2023 approved a N40 billion funding facility for the 25 local government councils of the State to defray their pension liabilities.

    TheNewsGuru.com (TNG) reports the House of Assembly approved the N40 billion funding facility during a plenary presided over by the Speaker, Rt Hon Emomotimi Guwor, following a letter addressed to the House by the State Governor, Rt Hon Sheriff Oborevwori.

    Recall that Governor Oborevwori had promised to work out modalities to defray pension liabilities owed to local government pensioners and retired primary school teachers.

    Oborevwori made the promise inline with his campaign pledges when the Association of Local Governments of Nigeria ALGON, Delta State Chapter led by Hon. Victor Ebonka, paid him a courtesy visit at Government House, Asaba on 14th June.

    During the courtesy visit, the Governor noted the serious hardship being faced by the people of Delta State, following removal of fuel subsidy by the federal government.

    While also noting that local governments play important roles in the development of the grassroot, Oborevwori stressed the need to properly manage the expectations of the people and especially provide palliatives.

    In line with managing the expectations of the people, the Governor remarked that his administration would collaborate with local government councils to pay the backlog of pensions owed to local government retirees and retired primary school teachers.

    “As the third tier of government, the local government plays a very significant role in our democratic setting and political evolution; being the arm of government that is closest to the grassroot.

    “I note with delight that the local government administration in the state has been characterised by peace and stability, in addition to strong synergy with the state government”.

    “With the hardship we are facing now with this subsidy removal, I want to appeal to you to talk to your people, your agents and tax collectors not to impose unnecessary taxes on our people.

    “Unlike some states, our local government councils have full control of their finances. In fact, the previous administration regularly assisted with grants, as a result of which we have continued to see steady progress in developing our rural areas.

    “We may not have been where we want to be but I am proud of the progress we have made. This administration will sustain the precedent that has been laid by my predecessor.

    “We shall not interfere with your finances and we will offer assistance where necessary. In this regard, we shall be collaborating with the Local Government Pension Bureau, to see how the lingering pension issues will be resolved.

    “We met last week to discuss the issue but with a caveat that it is necessary to have an Auditor to audit the pension board and see how the process is carried out diligently so that we can know the actual persons who are due for such monies.

    “We don’t want pension funds to be manipulated,” Oborevwori stated during the courtesy visit by ALGON, Delta State Chapter on 14th June.

    TNG reports the Delta State House of Assembly approved the N40 billion Zenith Bank facility for the 25 local government councils of the State to defray their pension liabilities shortly after that visit.

    Until now, the 25 local government councils in the State were owing their pensioners a backlog of pensions up to the tune of N51 billion.

    The State Government under the leadership of immediate past Governor, Senator Dr Ifeanyi Arthur Okowa, assisted in no small measure to reduce the huge arrears.

    During his state wide electioneering campaigns tour as governorship candidate of the People’s Democratic Party (PDP), Oborevwori assured pensioners in the State that if elected, his administration will do whatever it takes to ensure that the arrears were paid.

    At the recent meeting with Delta ALGON, the government reached a consensus agreement with the body, and it was agreed that a N40 billion credit facility be obtained from Zenith Bank PLC to settle a substantial part of pensions arrears.

    However, the agreement came with a proviso that each local government will have to voluntarily without duress sign legal documents, as well as an irrevocable undertaking that its part of the credit facility should be deducted in monthly instalments at source from the Federation Accounts Allocation Committee (FAAC) at a reasonable interest rate to Zenith bank.

    This means that the N40 billion credit facility through the Local Government Staff Pension Bureau approved by the State House of Assembly shall be repaid by the beneficiary local governments within a period of time from their share of FAAC monthly allocations.

  • How FG, States, LGs shared N786.161 billion revenue for May

    How FG, States, LGs shared N786.161 billion revenue for May

    The Federation Account Allocation Committee (FAAC) has shared a total sum of N786.161 billion May 2023 Federation Account Revenue to the Federal Government, States and Local Government Councils.

    This was contained in a communiqué issued at the end of the Federation Account Allocation Committee (FAAC) meeting for June 2023; chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein.

    The N786.161 billion total distributable revenue comprised distributable statutory revenue of N519.545 billion, distributable Value Added Tax (VAT) revenue of N251.607 billion, Electronic Money Transfer Levy (EMTL) of N14.370 billion, and Exchange Difference revenue of N0.639 billion.

    In May 2023, the total deductions for cost of collection was N38.238 billion and total deductions for transfers and refunds was N163.193 billion.

    The balance in the Excess Crude Account (ECA) was $473,754.57

    The communiqué stated that from the total distributable revenue of N786.161 billion; the Federal Government received N301.889 billion, the State Governments received N265.875 billion and the Local Government Councils received N195.541 billion. A total sum of N22.855 billion was shared to the relevant States as 13% derivation revenue.

    Gross statutory revenue of N701.787 billion was received for the month of May 2023. This was higher than the sum of N497.463 billion received in the previous month by N204.324 billion.

    From the N519.545 billion distributable statutory revenue, the Federal Government received N261.686 billion, the State Governments received N132.731 billion and the Local Government Councils received N102.330 billion. The sum of N22.798 billion was shared to the relevant States as 13% derivation revenue.

    For the month of May 2023, the gross revenue available from the Value Added Tax (VAT) was N270.197 billion. This was higher than the N217.743 billion available in the month of April 2023 by N52.454 billion.

    The Federal Government received N37.741 billion, the State Governments received N125.804 billion and the Local Government Councils received N88.062 billion from the N251.607 billion distributable Value Added Tax (VAT) revenue.

    The N14.370 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N2.155 billion, the State Governments received N7.185 billion and the Local Government Councils received N5.030 billion.

    From the N0.639 billion Exchange Difference revenue, the Federal Government received N0.307 billion, the State Governments received N0.156 billion, the Local Government Councils received N0.119 billion and the sum of N0.057 billion was shared to the relevant States as 13 percent mineral revenue.

    According to the communiqué, in the month of May 2023, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Value Added Tax (VAT), Import and Excise Duties increased significantly, while Electronic Money Transfer Levy (EMTL) decreased marginally.

  • How I spent 13% derivation refund – Gov Akeredolu

    How I spent 13% derivation refund – Gov Akeredolu

    Ondo State Governor, Arakunrin Oluwarotimi Akeredolu has confirmed the receipt of 13 per cent oil derivation, subsidy and SURE-P refunds from the Federation Account in the last two years (2021-2022).

    A statement signed by the Governor’s Chief Press Secretary, Richard Olatunde, explained that the refunds received by the state were expended on capital projects and payment of accumulated salary arrears.

    The statement also disassociated Governor Akeredolu from those alleged to have been stealing funds meant for the Local Governments from the Federation Account Allocation Committee (FAAC).

    According to the statement, the refunds received from the Federal Government were judiciously expended on some key capital projects across the three senatorial districts of the state.

    “Some of the impactful projects undertaken and completed by this administration include the rehabilitation and asphalt overlay of the 32.6km Araromi-Alape road in Ilaje Local Government Area; 16.65km Ikaramu-Akunnu-chainnage 7-Oke Agbe Road in Akoko Northwest Local Government Area; 4.5km Agadagba Obon-New Ajapa Road in Ese-Odo Local Government Area; 3.0km Oke Igbo Township roads, Ile-Oluji/Okeigbo Local Government Area, among others.

    “Recently, the Governor commenced the rehabilitation of over 35 kilometers network of roads in Akure, the state capital. The roads being rehabilitated are the existing ones built by past governments several years ago and which are already in bad shapes with potholes and failed sections. The 9.5km Emure- Iporo Road and rehabilitation of 15.2km Akure phase “D” road networks have all begun.

    “The 10km Okitipupa-Igbokoda virgin road which will be commissioned by the Lagos State Governor, Mr. Babajide Sanwo-Olu, is another evidence of Governor Akeredolu’s commitment to infrastructural development. These intensive capital projects are financed from these refunds and Internally Generated Revenue.

    “The monthly FAAC receipts are devoted to the payment of salaries and pensions as agreed by Labour Leaders at the monthly meetings presided over by the Head of Service and Chairman of Joint Negotiating Council (JNC).

    “Despite Governor Akeredolu’s vow to always pay salaries and pensions as and when due, the financial crisis across the country occasioned by the outbreak of Covid-19 pandemic resulted in non-payment of salaries in full for some months. As at January 2022, Government was owing four months salary arrears as against seven months inherited.

    “Governor Akeredolu, having promised the civil servants in the state to prioritise payment of salaries, has continued to clear these backlogs of arrears. On three occasions this year, Government has paid double salaries in a month, thereby reducing the number of arrears. All salaries will be cleared before the year ends.

    “If the amount expended on these infrastructural projects and payment of salary arrears is juxtaposed with the refunds, it is crystal clear that the monies were not mismanaged in Ondo State.

    “The administration of Governor Akeredolu stands on the tripod of Transparency, Accountability and Integrity. We will continue to hoist the flag of transparency in governance while pursuing excellence in the journey to transform the state for the better,” the statement said.

    On the allegation that some Governors are stealing Local Government Funds, the statement noted that the Akeredolu administration has not touched funds meant for Local Governments since its inception.

    “As a matter of policy, monies meant for Local Governments are shared at their monthly Joint Account Allocation Committee (JAAC). Mr Governor doesn’t touch local governments funds. The local government Chairmen can attest to the fact that they have total freedom in the management of their funds,” the statement added.

  • Fact Check: Who between Gov Wike, S-South Govs lied on 13% derivation?

    Fact Check: Who between Gov Wike, S-South Govs lied on 13% derivation?

    Governor Nyesom Wike of Rivers State is perhaps the most talked about governor in Nigeria today. And it is neither by accident nor is it a coincidence. It is a carefully choreographed and well funded strategy to dominate the national political and media space. He sure knows how to force himself, his views on the public and be the dominant topic of discussion. Hardly a day passes without the garrulous and sometimes comic governor being featured on paid live national television stations, raking up one allegation, lambasting a known enemy, going on an ego trip or dancing to his favourite tune: as e day pain dem, e day sweet us.

    He has so positioned himself that when he speaks, the Peoples Democratic Party, its flag bearer, Atiku Abubakar, the National Chairman, Iyorchia Ayu, and indeed the leadership of the PDP sneeze, and usually end up with a new cold. He is like a bull in a china shop or an inebriated  man throwing wild tantrums. While his group, the newly named Integrity Group, peopled with four other governors, and some senior party leaders, may have reasons to disagree with their party, the larger-than-life, self-promoting and whimsical self adulation of the Rivers State governor, is losing them public understanding and support.

    His enemies, and they are many, are tempted to describe him as displaying symptoms of  what Professor Sylvanus Ekwelie, Professor Emeritus of the Mass Communications Department of the University of Nigeria, UNN, describes as delusion of grandeur. Truth is, I am a bit worried about him, post office. After May 29th, 2023, with him out of office and no possible political appointment in view, how will he manage his mental health? He is used to ostentation, to grandeur, to being the centre of fawning adoration of the “anywhere belly face” political supporters, who of course would have shifted their perfidious sycophancy to the next occupier of Government House, Port Harcourt. When the calls stop jamming his phones, when he wakes up and spends the day alone in his expansive, luxurious mansion, when reality of after-office-life dawns, when to his shock, he discovers the Bible remains true: vanity of vanity, all is vanity! What would he do?

    But I like him. For his boldness, rascality and entertainment value. He is surely having a very sunny time of life. But like him, forget tomorrow is pregnant. Let tomorrow come. Let the next occupier of the governorship stool inherit the curse which has afflicted previous governors: Dr Peter Odili, Rotimi Chibuike Amaechi, and now Nyesom Wike. Today is all that matters. And there is no way the story of the 2023 elections in Nigeria will be written, in future, without a generous paragraph, for ill or good, been devoted to the antics of Governor Wike. That is how it was for Governor Odili, and for Governor Amaechi. By the way, what do they give them to eat and to drink in that Rivers State Government House?

    Nevertheless, while tomorrow waits, Wike must have his day in the sun and ruffle as many feathers as he deems fit. Take for instance, his recent outing where he hosted President Muhammadu Buhari and poured on him some sweet, loving words, like a long lost darling. Forgotten are his recent angst against the President. He became for a moment one of the sycophants he so lambasted for daring to say some good things about the Buhari regime. He had said then:

    “When I hear people declaring for APC, saying they want to continue the good job of Mr President, the good job of people dying every day; the good job of Naira falling every day, I feel so ashamed. That we have gotten to the level where sycophancy, people will come and say, ‘I want to continue the good job of Buhari”. What is the good job of Buhari? Hunger is good job? or poverty is good job? insecurity is good job? or the economy falling is a good job? Such a shameful change. I can’t believe that somebody can come out in today’s Nigeria and  say ‘I want to continue where Mr Buhari has stopped’ May God forgive you. May God never allow that evil to continue.’”

    But in  upping the ante against Alhaji Atiku Abubakar and the PDP, he decided to pepper them by inviting President Buhari to commission some of his government’s projects. His past opinion of Buhari did not matter. He had a score to settle with his party and fellow Niger Delta governors, who instead of teaming up with him, chose to follow Atitku Abubakar; with the exception of Professor Benjamin Ayade of Cross River State, who has pitched his tent with the APC. He decided to hit them hard, below the belt, and put them in a difficult spot with their people.

    Playing to the gallery, Governor Wike announced that President Buhari has benevolently stretched out a generous hand of financial fellowship  to, and baptised, the Niger Delta states with about one trillion Naira of previously unpaid 13% derivation. This, he said, has been kept from the public. Niger Deltans  are not aware of the humongous funds which his fellow governors have collected and kept quiet about. Throwing a challenge to them, he listed a number of projects which he said he executed with the Buhari billion of Naira which fell on the lap of Rivers State. He then called on the people of the other states in the Niger Delta to ask their governors what they did with their own share.

    As expected, the newspapers and social media were awash with Wike lauding President Buhari for paying money owed to Niger Delta states since 1999’: “Let me say it for the first time. So many people asked me: ‘where is he getting this money’? Let me say it. I want, through the attorney-General of the Federation, to thank Mr President. Money that were not paid to the Niger Delta states since 1999 – the 13 percent deductions  – monies that were not paid. Mr President approved and paid all of us from the Niger Delta states. And for me, it would be unfair not to tell the public. It is not from FAAC money. It is the money that is supposed to be for Rivers, Delta, Akwa Ibom, Edo, and Bayelsa states.

    “Yesterday, we commissioned the ninth flyover. In December, we will commission the tenth flyover. By February next year, we will commission the eleventh and twelfth flyovers. So i want to sincerely from the heart and on behalf of the government and people of the state, thank Mr President for this because as an opposition government, he could have said ‘don’t pay’. You can’t do anything.

    Since 1999, the money has not been paid. Did we do anything? So, I want to sincerely thank him.”

    He achieved his aim. The media lapped on it and there was, as one, a massive uproar in the states of the Niger Delta. Incredulous. Political opponents tagged on this and started a mass mobilisation to compel the governors to account for the humongous funds which Governor Wike said Buhari had generously given to each of the states.

    Edo state was one of the first to react to the heat. It quickly informed that the Edo state has received only N2.1 billion in three tranches of N700 million each, out of the N28 billion, due to the state. Commissioner for Budget and Economic Planning, Mr Joseph Eboigbe, at a press briefing said: “In respect to the 13 percent derivation refund currently making the waves, it was the states commissioners of finance in Nigeria under the aegis of FAAC, especially those from the oil producing states that spotted that there was an anomaly in respect of the federal government spending money from crude oil and gas sales and not taking out derivation, so the work was done and a total of about N1 trillion was established as due to the oil producing states.

    “It went through the whole process and the FEC approved it and a methodology for repayment, as approved by RMFAC, which they now agreed on what will be due to each state. Edo state share of that figure was N28 billion. It is a small figure out of the N1 trillion but that is what got to us. What was also approved was the way and manner this money will go to the states.

    “The net amount will come to each state over five years. Each year, you will have quarterly remittance which means four releases each year over five years. This disbursement was late this year but some states went to court to restrain the government so the releases now started in October which is just last month. By the time they started the releases, Edo state got N700 million per quarter and this is verifiable in our bank account.”

    Bayelsa state also came out to speak on the controversial payment. Governor Duoye Diri, in a statement by his CPs, Daniel Alabra, informed that: “For people who are talking about the 13 percent derivation funds due to the state, I want to to state that for one reason or the other, we were under-paid. When we discovered that, we followed due process from the state’s Executive Council to the state’s House of Assembly. Approvals were given and the funds were discounted.

    “I do not play politics with this kind of thing. Anybody who wants to see how we use our money, our monthly transparency briefing on our financial income and expenditures are available. One kilometre of road we build in Yenagoa is costlier than three or four kilometres of road built elsewhere.”

    But it was Delta State’s  Fidelis Tilije who is  State Commissioner for Finance who came out to give an elaborate explanation and situate the funds and how it will be disbursed to the states. Speaking on AriseTV, he noted that N240 billion is Delta state share of the fund. But he, however, revealed that only N14.7 billion had been received so far, with the rest spread for payment over the next four years plus.

    As it turned out, contrary to Governor Wike’s claim that the entire money had been paid to the states, the truth is, by the agreement reached, it will take a total of five years, spread over four quarters yearly for the entire fund to be disbursed to the states. What Governor Wike failed to say, and which Governor Diri of Bayelsa state alluded to, is that some of the states have gone ahead to borrow tens of billions against the expected disbursements. Which means that though the payment will come over 60 months, some of the governors have discounted the full or part of the amount and spent theirs. That is what Governor Diri described at discounting.

    VERDICT:  Did President Buhari gift the Niger Delta states one trillion Naira in one fell swoop? The answer is no. First, the payment has nothing to do with President Buhari personally. It was a long drawn out reconciliation, with some court cases in-between, which RMAFC compiled and sent to FEC for approval. Secondly, none of the states has been paid the full amount. Rather only three tranches out of 20 endings in four years plus time have been paid. Governor Wike was economical with the truth.