FAAC: FG, states, LGs share N536.437 bn for July

The Federation Account Allocation Committee (FAAC) on Friday shared N536.437 billion among the federal, states and local governments for July. 

The Minister State for Finance, Dr Yerima Ngama, told newsmen at the FAAC meeting that the money was shared from the N906.76 billion receipts for the month. 

``The Federal Government got N253.996 billion while the states and local governments received N128.830 billion and N99.323 billion respectively. 

``The oil-producing states received additional N54.289 billion, representing 13 per cent of oil revenue normally paid as derivation fund,’’ Ngama said. 

He said that N16.453 billion was proposed as augmentation as a result of the shortfall in distributable revenue based on the 2011 approved budget. 

The minister said federal-collected revenue rose from N883.300 billion in June to N906.759 billion in July, a difference of N23.459 billion. 

Ngamasaid the increase was the result of improved crude oil production and lifting during the month as a result of improvement in operations at some terminals after maintenance works. 

 He added that the revenue was further boosted by companies’ income tax payments made by various large companies as well as the collection of arrears of royalties. 

 Ngama said the money shared by the three tiers of government included VAT of N65.995 billion. 

He said that total revenue distributed for the month, including VAT and augmentation, was N616.245 billion and this showed an increase of N9.802 billion or 1.62 per cent compared to the amount distributed in June. 

Ngamasaid there was exchange gain of N257.666 million being the difference between the average of the prevailing exchange rates and the budgeted rate. 

He said the meeting was meant to share ideas so that other states would benefit, adding that the revenue generated was to develop the country. 

Ngamasaid N275.27 billion was in the excess crude oil account and that everything possible was being done to build up the account.

He added that the committee also resolved to start publishing the monthly distribution. ``We want to be open and transparent,’’ he said.

Ngamasaid reports of revenue collection agencies were read and adopted and the accounts with the supporting statements submitted for consideration and approval.   

He added that the committee resolved to shift the meeting from Thursdays and Fridays to Mondays and Tuesdays, adding that the next FAAC meeting will hold from Sept. 12 to Sept. 13. (NAN)