A total disbursement of N652.229billion distributable federal allocation for the month of July 2017 was shared to the Federal, States and Local Government Councils. The Accountant General of the Federation (AGF) Idris Ahmed announced this after the Federation Accounts Allocation Committee (FAAC) meeting.
Ahmed, who represented the Minister of Finance, Mrs. Kemi Adeosun, said the money was generated from Value Added Tax (VAT), Petroleum Profit Tax (PTT) and customs duty collection. The shared amount comprised the month’s statutory distributable revenue of N570.584 billion and the Value Added Tax of N81.645 billion.
Accordingly, from Net Statutory Allocation, the federal government received N274.893 billion representing (52.68 per cent); states received N139.429 billion (26.72 per cent); local government councils received N107.494 billion representing (20.60 per cent); while the oil producing states received N29.894 billion as 13 per cent derivation revenue.
Furthermore, from the revenue available from the Value Added Tax (VAT), federal government received N11.757 billion (15 per cent); states received N39.190 billion (50 per cent) while the local government councils received N27.433 (35 per cent). He announced that going by the sharing formula arrangement, the Federal Government got N286.650 billion, while states got N178.619 billion. The 774 local governments were allocated N134.927 billion.
According to the minister, the gross statutory revenue for June was N570.584 billion, pointing out that it was N253.022 billion higher than N317.562 billion which was realised in May and shared in June last month. Giving further breakdown, he revealed that non- mineral revenue increased by N181.2 billion from N157.5 billion in May to N338.8 billion in June.
He added that N29.8 billion was shared to oil- producing states as their 13 per cent oil derivation, while Federal Inland Revenue Service (FIRS) refund stood at N22.1 billion. The AGF also disclosed that the decrease in the average price of crude oil from $55.18 to $50.27 per barrel and a significant decrease in export volume by 3.20 million barrels resulted in decreased revenue from export sales for the federation by $183.68 million.
“Crude oil production suffered due to leakages, shut-ins and shut-downs at terminals for maintenance as the force majeure declared at Forcados Terminal since February 2016 subsisted. There were significant increases in Companies Income Tax (CIT) being the peak period for its allocation and PPT. Also VAT, import and excise duties recorded marginal increases,” he said.
