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  • FG, States, LGAs share N1.92tr in three months – NBS

    FG, States, LGAs share N1.92tr in three months – NBS

    The National Bureau of Statistics (NBS) has revealed that the Federation Account Allocation Committee (FAAC) has disbursed N1.92 trillion to three tiers of government in first quarter of 2019.

    This NBS figures are however Allocations by Federation Account Allocation Committee for the months preceding when they were shared.

    For instance, Allocation by Federation Account Allocation Committee for the Month of December, 2018 was shared in January, 2019 and so for the other two months of February and March.

    The NBS figures, which tallied with the figures from the Office of the Accountant General of the Federation (OAGF), said FAAC disbursed N649.19 billion to the three tiers of government in January, 2019 (December 2018); N660.37 billion in February (January 2019) and the sum of N619.86 was distributed to the three tiers in March (February 2019). FAAC Allocations for March 2019 will be done later this month.

    Of the N1.92 trillion so far disbursed, the Federal Government has received N803.18 billion in the three months.

    States have received N530.14 billion while the local governments have received N398.43 billion.

    Interestingly, in January 2019, Delta state received the highest allocation of N17, 360,640, 513.62 excluding the N3, 862,469,150.06 the state collected on behalf of its 25 local government areas.

    Osun state got the lowest state allocation of N1,730,201,728.81 aside from the N3,886,506,134.26 it collected on behalf of the 30 local government areas of the state.

    The NBS breakdown showed the federal government received N270.17 billion in January, N275.33 billion in February and N257.68 billion in March while the 36 State Governments received N178.04 billion in January, N182.17 billion in February and N169.93 in March. All the 774 Local governments received N133.83 billion in January, N136.88 billion and N127.72 billion in March.

    The NBS report further revealed that the amount disbursed in January comprised N547.46 billion from the Statutory Account, N100.76 billion from Valued Added Tax (VAT) and N976.53 million exchange gain differences while the sum of N45.36 billion was shared among the oil producing states as 13% derivation fund in January 2019 alone.

    Further breakdown of revenue allocation distribution to the federal government revealed that the sum of N216.57 billion was disbursed to the federal government’s consolidated revenue account.

    N4.81billion was disbursed as share of derivation and ecology and N2.43 billion as stabilization fund. N8.15 billion was shared for the development of natural resources and N5.82 billion to the Federal Capital Territory (FCT), Abuja.

    The report also stated that revenue generating agencies such as “Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N4.69 billion, N4.04 billion and N8.04 billion respectively as cost of revenue collections.”

    For February, the report said the amount disbursed comprised N497.12 billion from the Statutory Account; N104.47 billion from Valued Added Tax (VAT) and N8.12 billion as excess charges recovered.

    The sum of N50 billion was distributed as FOREX Equalisation Fund and N654.70 million as exchange gain differences. N48.49 billion was shared among the oil producing states as 13 per cent derivation fund in February.

    Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N5.66 billion, N7.62 billion and N4.07 billion as cost of revenue collections.

    Further breakdown of revenue allocation distribution to the Federal Government of Nigeria received the sum of N221.33 billion into the consolidated revenue account. N4.94 billion was disbursed as share of derivation and ecology and N2.47 billion as stabilisation fund. Also, N8.30 billion was shared for the development of natural resources and N5.90 billion to the Federal Capital Territory (FCT) Abuja.

    In March, the NBS report revealed that the amount disbursed comprised of N474.42 billion from the Statutory Account, N96.39 billion from Valued Added Tax (VAT), N4.02 billion as excess bank charges recovered. N44.17 billon was distributed as FOREX Equalisation Fund and N858.46 million as exchange gain differences.

    N50.95 billion was shared among the oil producing states as 13 per cent derivation fund in the month. Further breakdown of revenue allocation distribution to the Federal Government of Nigeria received the sum of N203.04 billion into the consolidated revenue account while N4.63 billion was disbursed as share of derivation and ecology; N2.31 billion as stabilization fund.

    Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N3.91 billion, N6.49 billion and N3.19 billion as cost of revenue collections.

    The NBS report also noted N7.77 billion was shared for the development of natural resources and N5.52 billion to the Federal Capital Territory (FCT) Abuja in March.

  • Ekiti court refuses motion stopping Fayemi from dissolving LGs

    Ekiti court refuses motion stopping Fayemi from dissolving LGs

    An Ekiti State High Court on Friday refused to grant a motion seeking to restrain the Governor-elect, Dr. Kayode Fayemi, from dissolving the 16 local government councils.
    The application was filed by the state’s Association of Local Governments of Nigeria led by the Chairman of Ifelodun/Irepodun Local Government, Dapo Olagunju.
    In his ruling, Justice Abiodun Adesodun described the application as “unmeritorious, preemptive and speculative,” as there was no compelling fact in the application to warrant the granting of the order.
    The judge subsequently adjourned the substantive matter till October 22.
    The LG bosses filed the case through their lawyer, Obafemi Adewale, while Tajudeen Akingbolu and Adeoye Aribasoye appeared for Fayemi.
    Fayemi had challenged the jurisdiction of the court to hear the application on the grounds that the matter was speculative.
    All the Local Government chairmen are members of the Peoples Democratic Party, while Fayemi is of the All Progressives Congress.
    The Governor-elect is to assume office on Tuesday, October 16, when the tenure of the incumbent, Governor Ayodele Fayose, comes to an end.

  • Respite for workers as FAAC releases N668bn to FG, states, LGs to pay salaries

    The Federation Accounts and Allocation Committee (FAAC) reached a compromise to release N668.898 billion to the three tiers of government for the month of May, pending the resolution of issues raised by the state governors over remittances from the Nigerian National Petroleum Corporation (NNPC).

    The Federal Ministry of Finance on Friday, that, the move was to cushion the hardship being experienced by civil servants in many states of the country, who have been unable to receive their June salary.

    The ministry’s director of information, Hassan Dodo, who signed the statement said, “efforts are being intensified to address the unsatisfactory remittances.”

    Recall that the 36 state governors had accused revenue generating agencies, especially the NNPC, of withholding some monies that ought to go into the federation account for sharing.

    The N668.898billion released on Friday afternoon, according to Dodo, “is made up of statutory distributable sum of N575.475 billion and N 93.423 billion from the Value Added Tax (VAT).”

    The Federal Government received N282.223 billion of the total; State Governments – N181.167 billion; and Local Government Councils – N136.490 billion.

    The Oil Producing States got N53.071 billion as 13 per cent derivation while N15.947 billion was paid to the revenue generating agencies as costs of collections.

    The statutory revenue of N575.475 billion received for the month of May 2018 was lower than the N613.057 billion received for April 2018 by a total of N37.582 billion. From the total statutory revenue of N575.475 billion, the Federal Government was given N268.770 billion; the States – N136.324 billion; Local Government Areas – N105.100 billion; the Oil Producing States – N53.071 billion, and the revenue generating agencies received N12.210 billion as costs of collections.

    For the month of May 2018, the total revenue of N93.423 billion from the Value Added Tax (VAT) was N5.458 billion higher than the N87.965 billion distributed in April 2018.

    From the total of N93.423 billion, the Federal Government received N13.453 billion; the States received N44.843 billion; the Local Government Councils received N31.390 billion, while N3.737 billion was received by the revenue collecting agencies.

    Before the funds were released, state governors had directed their finance commissioners not to shift ground, unless the NNPC was prepared to remit fully, what is expected of it, into the federation account.

    As a first measure to stop future shortchanging of the federation account, the state governments had resolved to “strengthen the processes” of making revenue generating agencies transmit accurate amounts to the federation account.

    For three consecutive FAAC meetings, the remittances to the federation account by the NNPC had generated controversy, with the issue coming to a head, when NNPC remitted N127 billion into the account, instead of the expected N147 billion from royalties and Petroleum Profit Tax (PPT).

    The impasse forced Finance Minister, Kemi Adeosun, to seek President Buhari’s intervention in the matter.

  • Edo Govt. moves to clear LGs salary arrears

    The Edo Government on Wednesday said it had put modalities in place to clear the salary arrears owed by the immediate past Local Government administrations in the state.

    Mr Ebomhiana Musa, the Chief Press Secretary to the Deputy Governor Philip Shaibu, disclosed this in a statement in Benin.

    Musa said seven out of the 18 local governments owed their workers salary arrears ranging from six to nine months.

    He gave the names of the seven indebted local governments as Oredo, Egor, Orhionmwon, Uhunmwonde, Esan West, Esan North East and Etsako West.

    He said the Commissioner for Local Government and Community Affairs, Mr Jimoh Ijegbai, the council Chairmen and the deputy governor had met over the clearance of the salary backlog.

    Musa gave the salary backlog profiles of the councils as Egor (9 months amounting to N400 million), Uhunmwonde (7 months amounting to N172 million) and Orhionmwon (6 months amounting to N301 million).

    Others are Esan West (6 months amounting to N280 million), Esan North East (7 months amounting to N36 million) and Etsako West (6 months amounting to N233 million).

    The chief press secretary, however, said the level of Oredo local government’s indebtedness could not be ascertained at the meeting due to the absence of the chairman.

    He quoted the deputy governor as warning against use of the dedicated Internally Generated Revenue (IGR) for salaries, adding that it was strictly for projects that would bring developments to the grassroots.

     

  • FAAC: FG, States, LGs settle differences with NNPC; share N626.8b for April

    The federal government, states and local governments shared N626.8 billion for the month of April.

    Ahmed Idris, the Accountant-General of the Federation (AGF), said this on Thursday in Abuja, while briefing Journalists on the outcome of the Federal Account Allocation Committee (FAAC) meeting.

    Giving a breakdown of the revenue accrued in March, Mr Idris said N480.59 billion was received as gross statutory revenue, lower than N557.94 billion received in March by N77.34 billion.

    He said the reduction in revenue was due to a decrease in the crude oil export sales by 13 per cent when compared to 5.42 million barrels from the previous month.

    “The issues that negatively affected production were the Shut-ins and Shut-downs at various terminals for repairs and maintenance.

    “This resulted in reduced revenue from federation crude oil exports sales by 33.58 million dollars.

    “However, the average crude oil price increased from 63.08 dollars to 65.72 dollars per barrel.

    “There was a considerable rise in oil royalty for the month, while Companies Income Tax (CIT) and Import Duty recorded marginal increases.

    “Value Added Tax (VAT) decreased slightly but there was a significant drop in income from Petroleum Profit Tax (PPT).’’

    He said N83.7 billion was received from VAT, showing a decrease of N5.74 billion as against N89.4 billion received in February.

    Mineral revenue was N360.5 billion, indicating a decrease of N83.7 billion from the previous month, while non-mineral revenue was N120 billion, with an increase of N7 billion.

    For the Excess Crude Account (ECA), Mr Idris said the balance stood at 1.83 billion dollars from 2.3 billion dollars in the previous month.

    The shared amount comprised the month’s statutory distributable revenue of N480.5 billion, VAT of N83.7 billion and Forex Equalisation of N62.52 billion.

    Giving a breakdown of the distribution, he said N263.1 billion was allocated to the Federal Government, N167.5 billion to states and N126.29 billion was received by the local governments.

    Speaking on the issue of reconciliation of accounts with the Nigerian National Petroleum Corporation (NNPC), Mr Idris said it was ongoing.

    “There is no public finance system that will be devoid of reconciliations at any time.

    “So reconciliation is part of the order and in that particular instance, reconciliation that has started last month, continued this month and there is nothing new.

    “We could not meet yesterday because we felt certain milestone has to be reached and on getting to those milestones, we sat today and have considered the figures for distribution.

    “There was this gentleman agreement between FAAC and NNPC that whatever NNPC generates should be paid into the federation account and whatever expenses NNPC incurs, they should write to claim it.’’

    He said as far as the operations of the NNPC was concerned, vis-a-vis the retirement of FAAC, these were issues being considered during the state level discussion and there would be reports when they had been sorted out.

    He, however, said the amount being expected from NNPC after the reconciliatory process was not confirmed and would not want to speculate.

    “We do not talk on mere speculation or on hearsay, we have to wait for the amount to come and we pay to the last kobo.

    “We know what will be distributed and that is accounting and that is public finance.

    “We do not base our projections on speculations because there has to be factual data,’’ Mr Idris said.

     

  • FAAC: FG, States, LGs share N609.95bn revenue in November

    The Federation Account Allocation Committee (FAAC) distributed N609.95 billion to Federal, States and Local Governments as revenue generated in November.

    This is N77.25 billion more than what it shared in October, Ahmed Idris, the Accountant-General of the Federation said.

    Mr. Idris said that after the cost of collection deductions by FIRS, Customs and DPR, the Federal Government received N248.2 billion, representing 52.68 per cent; the states got N125.9 billion, representing 26.72 per cent and the 774 local councils received N97.06 billion, amounting to 20.60 per cent.

    According to Mr. Idris, oil producing states got N54.48 billion, which represents the derivation share of 13 per cent.

    He said the country generated N356.07 billion as mineral revenue and N193.46 billion as non-mineral revenue in November, both showing improvements over the earnings in October.

    Mineral revenue increased by N38.78 billion, while non-oil mineral revenue also jumped by N68.65 billion.

    Mr. Idris said oil revenue continues to be negatively impacted by low production due to poor maintenance, sabotage and the Force Majeure declared at Bonny Terminal.

    He said the balance in the Excess Crude Account (ECA) as at Dec. 15 remained $2.317 billion. He also put the balance in the Excess Petroleum Profit Tax account, at $133 million.

    Mr. Idris said the Federation Account has received instruction from the National Economic Council that $1 billion be removed from ECA to fight Boko Haram.

    “The instruction has been given. But there is a process before money is taken out of an account. So unless that withdrawal is made, the balance remains the same.

    “On what the money will be used for, the appropriate institution will have to give you that, namely the military, who are the ones that will utilise the money, and they know their needs,” he said.

    On why the money is being taken from the ECA, Mr. Idris said everyone should know that it is a savings account and ordinarily should have been distributed to the three tiers of government.

    “So if the same owners decide that part of it should be utilised to secure the country, to secure the system, to make the system work and provide security for life and property, I don’t think it should be an issue.

    “If the Governor of Ekiti has a problem with that, he should have made his position known to his forum, which is the Governor’s Forum.

    “His dissension should not come to me on the pages of newspapers. He is entitled to whatever, but it should be directed to the appropriate place,” he said.

    Meanwhile, Mahmoud Yunusa, the Chairman, Commissioners of Finance Forum, said the distribution was timely, as it would enable states and local councils to pay workers ahead of Christmas.

    NAN

     

  • FG, States, LGs share N532.7bn in October

    The Federal, States and Local Government in October shared N532.7 billion which shows a decline of N25.3 billion when compared to what they shared in September.

    The Permanent Secretary of the Ministry, Mahmoud Isa-Dutse, said this on Thursday in Abuja while briefing journalists on the outcome of the monthly Federal Account Allocation Committee, FAAC.

    Mr. Isa-Dutse attributed the decline to the decrease in revenue from export sales of $42.94 million due to a decrease in crude oil production by 1.25 million barrels.

    He said even though the average price of crude oil increased from $46.29 per barrel to $48.66 per barrel, it was not enough to make up for the loss in production.

    “Some of the issues that impacted negatively on crude oil production were attributed to ageing facilities which resulted to shut-ins and shut-downs of pipelines at various terminals for repairs and maintenance.

    “Petroleum Profit Tax increased significantly while Import Duty and Value Added Tax improved only significantly.

    “Companies Income Tax and Oil Royalty recorded slight decreases in the month under review,” he said.

    In summary, Mr. Isa-Dutse said after deductions as cost of collection by FIRS, Customs and DPR, the federal government received N205.7 billion, representing 52.68 per cent; states and N104.3 billion, representing 26.72 per cent.

    The local governments, he said, received N80.4 billion, amounting to 20.60 per cent of the amount distributed.

    Mr. Isa-Dutse announced that N40.8 billion representing 13 per cent derivation revenue was also shared among the oil producing states.

    He said that the country generated N317.2 billion as mineral revenue and N124.4 billion as non-mineral revenue.

    He said this showed an increase of N41.6 billion from what the country generated as mineral revenue and a decrease of N23.5 billion in non-mineral revenue from what was generated in the month of September.

    Meanwhile the Chairman, Commissioners of Finance Forum, Mahmoud Yunusa, has apologised for the lateness in holding the meeting, which was supposed to have taken place on November 23.

    He said the meeting was cancelled by the state governors due to discrepancies found in revenue figures presented by some of the revenue generating agencies.

    Mr. Yunusa confirmed that the NNPC had increased what they had initially presented to FAAC as what they had generated after the states showed their displeasure.

    He said that to avoid such occurrence, the states as a major stakeholder in NNPC, would henceforth keep “an eagle eye on the affairs of the NNPC”.

    “Going forward we will be fully involved in what the NNPC does to avoid this kind of errors in future. We will scrutinise their books,” he said.

     

     

    NAN

  • Full Analysis: FG, States, LGs share N462bn for May

    Full Analysis: FG, States, LGs share N462bn for May

    A total of N462.359 billion has been distributed as Federal Allocation for the month of May 2017 to the Federal Government, State Governments and Local Government Councils.

    This is contained in a communiqué issued by the Technical sub-Committee of Federation Accounts Allocation Committee (FAAC) at the end of the meeting held Thursday in Abuja.

    The statement signed by the Ag. Accountant General of the Federation was made available to newsmen by Mrs Kenechukwu Offie, Director of Information, OAGF.

    It indicated that the gross statutory revenue of N317.562 billion received for the month is higher than the N274.110 billion received in the previous month by N43.452 billion.

    It said, “The slight drop in the average price of crude oil from $55.38 to $55.18 per barrel and a decrease in export volume by 1.023 million barrels, reduced oil revenue by $57.12 million.

    “Crude oil production suffered due to leakages, sabotage, shut-ins and shut-downs at Terminals for maintenance and the Force Majoure declared at Forcados Terminal since February, 2016 subsisted.

    “There were significant increases in revenues from Companies Income Tax and Oil Royalty, however, the increase in customs and excise duty was marginal. The distributable Statutory Revenue for the Month is N317.562 billion.

    “There is a proposed distribution of N64.812 billion being the exchange rates differential. The total revenue distributable for the current Month (including VAT) is N462.359 billion.

    “The shared amount comprised the Month’s Statutory distributable revenue of N317.562 billion, the gross revenue available from the Value Added Tax (VAT) was N79.985 billion as against N84.673 billion distributed in the preceding month, resulting in a decrease of N4.688 billion.

    “The total revenue distributable for the current month (including VAT) is N462.359 billion.

    “Accordingly, from Net Statutory revenue, Federal Government received N147.682 billion representing (52.68%); States received N74.906 billion (26.72%); Local Government Councils received N57.750 billion representing (20.60%); while the Oil Producing States received N20.505 billion as 13% derivation revenue.

    “Furthermore, from the Revenue available from the Value Added Tax (VAT), Federal Government received N11.518 billion (15%); States received N38.393 billion (50%) while the Local Government Councils received N26.875 billion (35%).”

     

  • Osun receives lowest allocation as FG, States, LGs share N1.4trn in first quarter

    Osun receives lowest allocation as FG, States, LGs share N1.4trn in first quarter

    …as Akwa Ibom, Osun emerge highest and lowest recipients respectively

    The Federal Government, the 36 states and their local government areas have so far shared N1.4 trillion from the federation account, being revenue generated in the first quarter of 2017.

    A breakdown by Federation Account Allocation Committee (FAAC)on Sunday in Abuja, shows that key agencies that remit funds into the federation account are the Nigerian National Petroleum Corporation (NNPC), the Federal Inland Revenue Service and the Nigerian Customs Service.

    The total revenue shared in January between the federal, states and local government was N430.16 billion, meaning that federal took N168 billion, states, N114.28 billion and local government, N85.4 billion.

    The federation grossed in N514 billion in February and federal government’s share was N200.6 billion, states, N128.4 billion and local government, N96.52 billion.

    However, in March, revenue generation dipped lower, grossing N466.9 billion, and from it, the federal government got N180.5 billion, state governments, N116.5 billion and local government, N87.5 billion.

    The allocation was made using the revenue sharing formular, Federal Government, 52.68 per cent; states, 26.72 per cent and local governments 20.60 per cent.

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

    The liabilities paid by the states in the first quarter, included an external debt of N8.73 billion, contractual obligations of N30.15 billion and other deductions amounting to N50.23 billion.

    The other deductions, cover National Water Rehabilitation Projects, National Agricultural Technology Support, Payment for Fertiliser, State Water Supply Project, State Agriculture Project and National Fadama Project.

    However, here is what each of the 36 states got in the first quarter after all deductions were made:

    Abia N8.42 billlion, Adamawa N7.8 billion, Akwa Ibom N34.88 billion, Anambra, N8.7 billion, Bauchi, N7.9 billion, Bayelsa, N22.97 billion, Benue, N8.16 billion, Borno, N9.74 billion and Cross River, N4.28 billion.

    Also, Delta got N21.54 billion, Ebonyi, N7.56 billion, Edo, N6.5 billion, Ekiti, N4.97 billion, Enugu, N7.86 billion, Gombe, N6.35 billion, Imo, N7.92 billion, Jigawa, N9.66 billion, Kaduna, N10.56 billion and Kano, N14.02 billion.

    Similarly, Katsina’s share from the federation account in 3 months was N10.05 billion, Kebbi, N8.37 billion, Kogi, N8.28 billion, Kwara, N6.9 billion, Lagos, 19.03 billion, Nassarawa, N7.41 billion and Niger, N9 billion.

    Finally, Ogun state got N4.98 as allocation for first quarter, 2017, Ondo,N10.22 billion, Osun, N1.76 billion, Oyo, N8.9 billion, Plateau, N5.7 billion, Rivers, N26.8 billion, Sokoto, N9.07 billion, Taraba, N6.9 billion, Yobe, N8.33 billion, and Zamfara, N5.91 billion.

    FAAC committee is made up of commissioners for Finance and Accountant-Generals from the 36 states of the federation.

    The Minister of Finance, is the chairman of the committee, while the Accountant-General of the Federation, is next with representatives from the NNPC.

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

     

  • FG, States, LGs share N465bn for January 2017 – FAAC

    FG, States, LGs share N465bn for January 2017 – FAAC

     

    The Federation Account Allocation Committee (FAAC) says it shared a total of N465.149 billion for the month of January among the Federal, States and Local Government Councils.

    According to a communique issued by the Technical sub-committee of FAAC, Gross statutory revenue received is N324.990 billion which is higher by N76.275 billion when compared with the N248.635 billion received in the month of December, 2016.

    The shared amount comprised the Month’s Statutory distributable revenue of N282.406 billion, Value Added Tax of N73.522 billion, Exchange gain of N48.371 billion and Excess PPT Account of N60.850 billion.

    There was also a N6.330 billion refund to the Federal Government by Nigerian National Petroleum Corporation (NNPC).

    Therefore, from the Net Statutory revenue, Federal Government received N133.192 billion (52.68%); States received N67.557 billion (26.72%); Local Government Councils received N52.083 billion (20.60%); while the Oil Producing States received N20.620 billion as 13% derivation revenue.

    Furthermore, from the Revenue available from the Value Added Tax (VAT), Federal Government received N10.587 (15%); States received N35.291 billion (50%) while the Local Government Council

    The Communique further explained that there was a revenue increase of $74.91 million in Federation export sales due to a rise in the volume of Crude oil export by 1.490 million barrels and an increase in the average price of Crude Oil from $47.30 to $49.57 per barrel during the period under review.

    However, the Force Majeure declared at Forcados, Qua Iboe and Brass Terminals remained in place.

    Federation revenues increased despite the Force Majeure and the

    Shut-down of pipelines for repairs and maintenance due to leakages and sabotage.

    PPT collection increased significantly while revenues from Companies Income Tax (CIT), Value Added Tax (VAT), Import Duty and Royalty decreased slightly.