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Tag: FAAC

  • ICYMI: How FG, States, others shared N3.88trn in 6 months

    ICYMI: How FG, States, others shared N3.88trn in 6 months

    The Federation Accounts Allocation Committee (FAAC) shared N3.879 trillion to the Federal Government, states, local government areas and other statutory recipients in the first half of 2020.

    This was contained in the latest edition of the quarterly report on the review of the Nigeria Extractive Industries Transparency Initiative (NEITI) released in Abuja, on Tuesday.

    A breakdown of the disbursements showed that N1.53 trillion went to the Federal Government, while the states got N1.29 trillion and the 774 local government areas received N771.34 billion

    The N1.53 trillion received by the FG in H1 2020 was 4.28 per cent lower than the N1.599 trillion it got in the first half of 2019 and 7.36 per cent lower than the N1.652 trillion it received in the first half of 2018.

    “For states, a total of N1.29 trillion was disbursed in the first half of 2020.

    “This was 2.8 per cent lower than the N1.35 trillion disbursed in the first half of 2019, and 5.6 per cent lower than the N1.37 trillion disbursed in the first half of 2020,” the report stated in part.

    For local government areas, the 2020 first half disbursements were 2.64 and 3.04 per cent lower than the corresponding disbursements for 2019 and 2018, respectively.

    However, disbursements in second quarter(Q2) 2020 were 1.09 per cent higher than total disbursements in Q2 2019 and 3.66 per cent lower than the one for Q2 2018.

    “FAAC disbursements in the second quarter of 2020 stood at N1.934 trillion.

    “This was made up of N739.2 billion to the Federal Government, N629.3 billion to state governments, and N375.4 billion to the 774 local government areas.”

    According to the report, the total FAAC disbursements in the second quarter of 2020 was slightly lower than the N1.945 trillion disbursed in the first quarter of 2020.

    This aligned with the projections made in the previous issue of the NEITI Quarterly Review, which projected lower FAAC disbursement in the second quarter.

    The report attributed the 0.55 per cent decrease in Q2 2020 to a couple of factors, including rebound in oil prices in the second quarter as a result of ease of lockdowns by countries across the world.

    The other was the adjustment of the official exchange rate by the CBN from N307 to a dollar to N360 to a dollar in March resulting in higher naira disbursements.

    FAAC disbursements in the first quarter and second quarter of 2020 were very volatile, with the difference in total disbursements between months ranging between N58.9 billion and N199.3 billion.

    “During this period, the disbursements were very volatile in the first half of 2020, compared to 2018 and 2019.

    “Unlike 2018 and 2019 where aggregate disbursements increased and decreased in successive months, in 2020 they fell for two straight months, increased in one month, and then decreased for two straight months.”

    In the months under consideration in 2020, aggregate disbursements fluctuated by large amounts, compared to 2018 and 2019.

    “Aggregate disbursements were N716.3 billion in January and this fell to N647.4 billion in February.

    “Thereafter, disbursements fell to N581.6 billion in March, before increasing to N780.9 billion in April.

    “Disbursements then fell to N606.2 billion in May and to N547.3 billion in June.

    “These figures indicate differences of N68.9 billion between January and February, N65.7 billion between February and March, N199.3 billion between March and April, N174.7 billion between April and May, and N58.9 billion between May and June.

    ” For comparison, the highest inter-month difference in the first half of 2018 was N62.9 billion, while the corresponding figure for 2019 was N63.5 billion.

    “Thus, there have been very wide fluctuations in aggregate disbursements so far in 2020,” the report also stated in part.

    NEITI in the report also disclosed that from January to May 2020, actual government revenue was N1.62 trillion, representing 62 per cent of the expected pro-rata revenue of N2.62 trillion from the revised budget.

    This, the NEITI said explained a shortfall of 38 per cent in government revenue for the first five months of the year.

    As oil prices continue to rise, and with the increased pace of economic activities, it projected that Government revenue will perform better in the second half of 2020, with the possibility of shortfalls in revenue compared to budgeted figures.

    On total net FAAC disbursements and deductions for states for the first half of 2020, the report observed wide disparities.

    Osun State had the lowest net disbursement of N13.13 billion, while Delta State had the highest net disbursement of N100.81 billion.

    “This implies that Delta State received seven times the disbursement that Osun State received.

    “Total net disbursements received by Delta State (N100.81 billion) was higher than the combined total net disbursements of N99.47 billion received by six states – Osun, Cross River, Plateau, Ogun, Gombe and Ekiti.

    “Also, the combined total net disbursements of N321.29 billion received by the four highest receiving states of Delta, Akwa Ibom, Rivers, and Bayelsa were higher than the combined total net disbursements of N314.08 billion received by 16 states.

    The States are Osun, Cross River, Plateau, Ogun, Gombe, Ekiti, Zamfara, Kwara, Nassarawa, Ebonyi, Taraba, Benue, Adamawa, Ondo, Bauchi, and Abia.

    “While Lagos State had the highest deductions, Yobe State had the lowest.

  • Coronavirus hits hard as FG, States, LGs share N547.3bn, lowest in 2020

    Coronavirus hits hard as FG, States, LGs share N547.3bn, lowest in 2020

    The Federation Accounts Allocation Committee (FAAC) on Wednesday shared N547.309 billion to the three tiers of government for the month of May.

    It was the lowest amount shared this year, reflecting the downside effect of COVID-19 pandemic.

    In January the three tiers shared N716billion.

    It was N647billion in February, N780 billion in March and N606billion in April.

    Out of the N547.3 billion available for May, the Federal Government received N219.799 billon, States N152.436 billion and Local Government Councils N114.095 billion.

    Oil producing states received N37.021 billion 13 per cent derivation fund

    The revenue came from Value Added Tax (VAT), Exchange Gain and Excess Bank Charges recovered.

    Mr Hassan Dodo, the Director of Information in the Ministry of Finance, Budget and National Planning, made this known in a statement in Abuja on Wednesday.

    This followed a virtual meeting chaired by the Permanent Secretary in the ministry, Dr Mahmoud Isa-Dutse.

    The cost of collection of Federal Inland Revenue Fund (FIRS) Refund Allocation to North East Development Commission (NEDC) was N23.958 billion.

    “The Gross Revenue available from the VAT for May was N103.873 billion against N94.498 billion distributed in the preceding month of April resulting in an increase of N9.377 billion.

    “The distribution is as follows: Federal Government got N14.490 billion, the States received N48.301 billion, Local Government Councils had N33.811 billon, while derivation got N0.000 and Cost of Collection and FIRS Refund/Allocation to NEDC got N7.271 billion.

    “The distributed Statutory Revenue of N413.953 billion received for the month was higher than the N370.411 billion received for the previous month by N43.542 billion, which the Federal Government got N191.580 billon, States received N97.172 billion and Local Governments got N74.915 billion.

    “Derivation got N33.599 billion and Cost of Collection was N16.687 billion.”

    The communique also revealed that Petroleum Profit Tax (PPT), Import Duty and VAT recorded increases, while Companies Income Tax (CIT), Oil Royalty and Excise Duty recorded decreases.

  • FAAC shares ₦780.926bn for March

    FAAC shares ₦780.926bn for March

    The Federation Accounts Allocation Committee (FAAC) has shared a total of ₦780.926 billion as March 2020 Federation Account Revenue.

    The Office of the Accountant General of the Federation (OAGF) disclosed in Abuja that the Federal, States, Local Governments and relevant Agencies in the country shared ₦780.926 billion as at the end of the FAAC meeting.

    According to the statement: “The N780.926 billion comprised Statutory Revenue, Value Added Tax (VAT), and Exchange Gain.”

    It was also disclosed the balance in the Excess Crude Account (ECA) grew a little to $72.221 million.

    The gross statutory revenue for the month of March 2020 was put at ₦597.676 billion.

    This was higher than the ₦466.058 billion received in February 2020 by ₦131.618 billion.

    Value Added Tax (VAT) yielded gross revenue of ₦120.268 billion in March 2020 as against ₦99.552 billion in February 2020, resulting in an increase of ₦20.716 billion.

    A total of ₦62.928 billion was available from Exchange Gain in the month under review.

    The OAGF noted: “The Statement of Accounts indicated that from the total revenue of ₦780.926 billion, the Federal Government received ₦264.330 billion.”

    Continuing, the Office said: “The State Governments received ₦181.487 billion, and the Local Government Councils received ₦135.950 billion.

    “The Oil Producing States received ₦38.751 billion as 13% derivation revenue while the cost of revenue collection by Revenue Agencies and allocation to North-East Development Commission (NEDC) was ₦160.408 billion.”

    According to the Statement of Accounts, the Federal Government received ₦217.773 billion from the gross statutory revenue of ₦597.676 billion.

    The State Governments received ₦110.457 billion and the Local Government Councils received ₦85.158 billion.

    The sum of ₦32.299 billion was given to the relevant States as 13% derivation revenue and ₦151.989 billion was cost of revenue collection by Revenue Agencies and allocation to NEDC.

    The Federal Government received ₦16.777 billion from the Value Added Tax (VAT) revenue of ₦120.268 billion available in the month of March 2020. The State Governments received ₦55.925 billion, the Local Government Councils received ₦39.147 billion, while the cost of collection by Revenue Agencies and allocation to NEDC was ₦8.419 billion.

    The Statement confirmed that the Federal Government received ₦29.780 billion, the State Governments received ₦15.105 billion, the Local Government Councils received ₦11.645 billion and the Oil Producing States received ₦6.452 billion from the total revenue of ₦62.982 billion available from Exchange Gain.

    It was also revealed that in the month of March 2020, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import and Excise Duties, Oil and Gas Royalties and Value Added Tax (VAT) all recorded substantial increases which resulted in the large volume of money shared.

    The monthly Federation Account Allocation Committee (FAAC) meeting for the month of April 2020, where the sharing of the March 2020 revenues was discussed, was held through virtual conferencing.

    Members of the Federation Account Allocation Committee (FAAC) could not meet in Abuja due to the lockdown in the country occasioned by the COVID-19 pandemic.

  • FAAC: September revenue shared to FG, States, councils shrinks

    FAAC: September revenue shared to FG, States, councils shrinks

    The Federation Account Allocation Committee (FAAC) on Thursday in Abuja, shared a total of N693.529 billion to the three tiers of government for the month of September, 2019.

    The N693.529 billion comprised revenue from Value Added Tax(VAT), Exchange Gain and Gross Statutory Revenue in the month.

    A communiqué read by the Accountant General of the Federation (AGF) Mr Ahmed Idris, confirmed that the gross statutory revenue for the month of September was N599.701billion.

    The amount was less than the N631.796 billion received in the previous month by N32.095 billion.
    For the month, gross revenue of N92.874 billion was generated from VAT as against N88.082 billion distributed in the previous month, indicating an increase of N4.792 billion.

    According to the communique, N0.954 billion was also realised from Exchange Gain for the month.

    A breakdown of the allocation showed that from the total revenue of N693.529 billion shared, the Federal Government received N293.801 billion, the States received N186.816 billion, and the Local Government Council received N140.864 billion.

    The Oil Producing States shared N51.532 billion as 13 per cent derivation, while the Revenue Generating Agencies received N20.517 billion as cost of revenue collection.

    The communique also stated that in September 2019, revenue from Petroleum Profit Tax (PPT) and Company Income Tax (CIT) decreased while Royalties, Import and Excise Duties and Value Added Tax increased considerably.

    However, the AGF said that as at Oct. 17, the balance in the Excess Crude Account was $323.692million

  • Delayed FAAC Disbursement: Reps raise alarm over excessive bank charges

    By Emmanuel Ovuakpore
    …point accusing finger at House leadership
    …say over 200k is deducted from each member’s monthly dues
    …insist bank rips lawmakers of at least N72m monthly
    Some members of the House of Representatives on Tuesday have alleged that an old generation bank is charging each member of the House roughly N200,000 monthly due to Federal Account Allocation Committee, FAAC’s delay in disbursing funds to first line charge government bodies.
    TNG investigations revealed that on a monthly basis FAAC does not disburse allocations until the 9th and 12th of every other month.
    This development made the House leadership to strike a deal with an old generation bank to pay all Reps either in the 25th or 28th of every month until ,FAAC releases their money by either 10th or 12th of the ensuing month.
    It was also agreed that within the stipulated period of delay interest should be charged on individual salary account of the lawnakers.
    But this is not going down well with the lawmakers who claimed it was a rip-off as the interest charged on the said accounts are outrageous.
    One of such lawmakers who hails from the South South geo-political zone but chose to speak under the condition of anonymity said:
    “It’s horrendous that in ten days we are made to cough out as much as N200k because our leaders failed to reason beyond their nose.
    “Before now another old generation bank (name withheld) had handled our salaries in the eighth Assembly and the bank use to give us ten days of grace but this one they start counting days immediately.
    “Some of us are of the opinion that the leadership must have struck a deal because if you calculate it by 360 members what they deduct is almost N72m monthly.
    Another lawmaker who spoke in the same vein declared that “we know a deal must have been struck with our leaders but the question is why was the salary account moved from SunTrust a new generation bank that gave us days off grace to an old generation bank that is charging us so much.
    “This question and so many others are giving us a lot to think about because we are smelling a rat in all these transactions.

  • FAAC: FG, States, LGs Share N770.8bn for August

    From Jonas Ike, Abuja

    The Federal Account Allocation Committee (FAAC) on Thursday in Abuja at its meeting, shared to the Federal Government, States and Local Government Councils a sum total of N740.880 billion as federal allocation for the month of August 2019.

    From this amount, the Federal Government received N301.804 billion, representing 52.68 per cent, the States received N188.925 billion representing 26.72 per cent and Local government councils got N142.654 billion, representing 20.60 per cent, while the oil producing states received N43.513 billion as 13 per cent derivation revenue.

    However, cost of collection/Transfers/ FIRS, refund was N43.984 billion.

    A communiqué issued by the FAAC indicated that the Gross Revenue available from the Value Added Tax (VAT) for August 2019 was N88.082 billion as against the N94.159 billion distributed in the previous month of July, 2019, resulting in a decrease of N6.077 billion.

    The distributed Statutory Revenue of N631.796 billion received for the month of August was lower than the N674.365 billion received in the previous month by N42.569 billion.

    The communiqué further disclosed that, revenues from Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) increased considerably, while Value Added Tax (VAT), Royalties, Import and Excise duties recorded decreases.

    However, additional N20 billion from the Forex Equalization Account shall be shared accordingly among the three tiers of government, which brings the total distributable revenue to N740.880 billion.

    Furthermore, the committee stated that as at August 19th, 2019, the Excess Crude Account (ECA) is $328.122m.

  • FAAC Shares N619.857Bn to FG, States LGAs in March

    From Jonas Ike, Abuja

    The Federation Accounts Allocation Committee (FAAC) has shared to the three tiers of government a total of N619.857 billion federal revenue generated in the month of February 2019, shared in March 2019.
    The Committee announced that as at 27thMarch 2019, the Excess Crude Account had the sum of $183 million.
    The total distributable revenue of N619.857 billion comprised revenues from various sources namely: distributable statutory revenue, Value Added Tax (VAT), Exchange Gain, Excess Bank Charges recovered and Forex Equalization.
    The gross statutory revenue for the month was N478.434 billion; revenue from Value Added Tax (VAT) was N96.389 billion; Exchange Gain was N0.858 billion and Forex Equalisation revenue was N44.176 billion.
    A communique issued by the Federation Account Allocation Committee indicated that from the total revenue of N619.857 billion, the Federal Government received N257.681 billion, the States received N169.925, the Local Government Councils received N127.722 billion. The Oil Producing States received N50.946 billion as 13% derivation revenue and the Revenue Generating Agencies received N13.582 billion as cost of revenue collection.
    The gross statutory revenue of N478.434 billion received for the month of February 2019 was lower than the N505.246 billion received in the previous month by N26.812 billion.
    The gross revenue from Value Added Tax (VAT) was N96.389 billion as against N104.468 billion distributed in the previous month, resulting in a decrease of N8.079 billion. From the total revenue from VAT, the Federal Government received N13.880 billion, the States received N46.267 billion, the Local Government Councils received N32.387 billion and the Revenue Generating Agencies received N3.855 billion.
    The communique stated that for the month of January 2019, the federation crude oil sales increased by about 46%, resulting in increased federation revenue from $425.00 million previously to $574.95 million.

  • FAAC disburses N8.03tn to FG, States in 2018

    The Federation Account Allocation Committee (FAAC) says it disbursed a sum of N8.03 trillion to the Federal and State Governments in 2018.

    Figures obtained from the National Bureau of Statistics, NBS, on Friday showed that FAAC disbursed the sum of N3.19 trillion to the Federal Government in 2018 while States received a total of N4.84 trillion within the period under review.

    According to the report, the amount disbursed to the FG comprised N2.12 trillion as Net Statutory Allocation, N156.98 billion as Valued Added Tax (VAT), N10.66 billion as NNPC refund to FG and the distribution of N128.41 billion from the FOREX equalisation fund.

    Similarly, the amount disbursed to the States comprised N2.27 trillion as Gross Statutory Account, N532.74 billion as Valued Added Tax (VAT), N8.64 billion as NNPC refund to FG, N824.64 billion as Exchange Gain distribution, N4.08 billion as Excess Bank Charges and the distribution of N103.36 billion from the FOREX equalisation fund.

    Akwa Ibom and Rivers States received the highest allocation of N424.93 billion and N394.17 billion respectively in 2018 while Osun and Ekiti States received the least allocation of N61.62 billion and N77.35 billion in that order.

     

  • NNPC, NPDC, others yet to remit $22.06bn, N481.75bn to FAAC – NEITI

    NNPC, NPDC, others yet to remit $22.06bn, N481.75bn to FAAC – NEITI

    The Nigeria Extractive Industries Transparency Initiative (NEITI) says that the 22.06 billion dollars and N481.75 billion yet to be remitted by NNPC and others to the Federation Account are legacy issues from its audit reports for 1999 to 2015.

    NEITI made the clarification in a statement signed by its Director of Communications and Advocacy, Dr Orji Ogbonnaya Orji, in Abuja, on Tuesday.

    He said that the others stakeholders involved include the Nigerian Petroleum Development Company (NPDC) and oil companies in the oil and Gas sector.

    He said that the bulk of the outstanding amounts was from NLNG dividends from 2000 to 2015 and outstanding payments for the value of 12 Oil Mining Licenses (OMLs) divested to NPDC between 2011 and 2013.

    “To say the non remittance happened under this administration or that the money went missing from the Federation Account is therefore totally incorrect and deliberately misleading.

    “This clarification has become necessary based on the distortion and politicisation of the media reports of a conference hosted by NEITI in Abuja on Monday,’’ he said

    Orji said that the focus of the conference was on how to ensure better implementation of NEITI’s audit recommendations, address the lingering issues in the extractive sector, and improve optimisation of Nigeria’s extractive endowments for the benefit of all Nigerians.

    “The conference was not a fault-finding or political event.

    “It was a solution-oriented gathering with good representation and useful contributions from government agencies (including NNPC, DPR, CBN, PPPRA etc), the private sector, civil society, academia, and the media,’’ he added.

    He noted that information shared for discussion was not only historical, but also not new.

    He further stated that there was no data shared and discussed at the conference that had not been made public over time, most notably in the NEITI Policy Brief on unremitted funds released in April 2017 and in the NEITI 2015 industry audit reports released in December 2017.

    “Those who follow discussions on these issues closely would also be aware that various efforts have been made by different government institutions, including the Federation Allocation Accounts Committee (FAAC) and the National Economic Council (NEC) to ensure that NNPC and its subsidiaries address these legacy issues.

    “It is noteworthy that at the conference yesterday, the NNPC team confirmed that many of the issues under reference have either been resolved or at advanced stages of resolution.

    “ While NEITI awaits the outcome of its ongoing audits for 2016 and 2017 to provide update on these and other issues, it is wrong to deliberately distort data from NEITI’s audits and the issues arising from them for sensational or political purposes,’’ Orji said.

    He appeal to the media and the civil society as key partners in the NEITI process to always cross-check to ensure that facts align with the issues before publication.

  • FAAC: FG, States, LGAs share N698.71b for September

    The Federal Government, 36 States and FCT as well as 774 Local Governments on Thursday shared N698.7billion for the month of September.
    The Minister of Finance, Mrs Zainab Ahmed, said this in Abuja, while briefing newsmen on the outcome of the Federation Account Allocation Committee (FAAC) meeting.
    Giving a breakdown of the revenue accrued in September to be distributed in October, Ahmed said N569.28 billion which was received as gross statutory revenue, was lower than the N587.1 billion shared in August by N17.8 billion.
    A communiqué issued by the Technical Sub-Committee of FAAC showed that the distributable statutory revenue for the month stood at N569.28 billion and the total revenue distributable for the month was N698.7billion.
    It also showed that the gross revenue available from Value Added Tax (VAT), was N75.9 billion as against N109.9 billion distributed in the preceding month, resulting in a decrease of N33.9 billion.
    “We are also distributing N50 billion which has accrued from the forex equalisation account to the three tiers of government.
    “There is an exchange gain also of N0.275 billion that is included in the distribution.
    “So total distributable revenue to the three tiers of government for the month of October 2018 is N698.71 billion,” Ahmed said.
    In the summary of the distribution, the Federal Government got N265.6 billion from statutory revenue, N11.3 billion from VAT, N0.13 billion from the exchange gain and N22.9 billion from forex equalisation fund, culminating in N300.1 billion.
    The States got N134.75 billion from statutory revenue, N37.9 billion from VAT, N0.06 billion from the exchange gain and N11.6 billion from forex equalisation fund, culminating in N184.4 billion.
    The Local Governments got N103.8 billion from statutory revenue, N26.5 billion from VAT, N0.05 billion from the exchange gain and N8.96 billion from forex equalisation fund, culminating in N139.4billion.
    Derivation of 13 per cent of mineral revenue amounted to N59.09 billion and cost of collection/transfer and Federal Inland Revenue Service (FIRS) Refund was put at N15.57 billion.
    “Crude oil export sales increased by 0.17 million barrels resulting in increased revenue to the Federation of 8.48 million dollars.
    “However the average unit price dropped from 77.10 dollars to 75.69 dollars.
    Ahmed said that the report of the committee on the Excess Crude Account (ECA) was stepped down and withdrawn to enable the committee to rework and represent it at the next meeting.