Marginal Rise in Allocation as FG, States, LGs Share N400bn for December

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By Ndubuisi  Francis in Abuja
 

Monthly share of the Federation Account Allocation Committee (FAAC) to the three tiers of government recorded a marginal increase in December 2016, from N386.879 in November to N400 billion.

The December allocation, which is N13.1 billion higher than the preceding month (November), is however lower than N420 billion shared by the three tiers in October.

Briefing journalists at the end of the meeting in Abuja yesterday, the Minister of Finance, Mrs. Kemi Adeosun traced the marginal increase to increase in royalties collected, Company Income Tax (CIT) and Value Added Tax (VAT).

Giving further details, Adeosun, who is the Chairman of FAAC, disclosed that N224.883 was shared as Statutory Allocation with the federal government receiving N105.762 billion; states, N53.644 billion; local governments, N41.357 billion, with N15.504 billion as 13 per cent derivation for oil mineral producing states.

Adeosun stated that N79.273 billion was shared from VAT, giving the breakdown as N11.415 billion for the government at the centre; state governments N38.051 billion and local governments N26.636 billion.

N52.846 billion was also shared as proceeds of exchange gain and N42.998 billion from Petroleum Profit Tax (PPT). 

On the maintenance of the PPT account, Adeosun revealed that the account, was being kept as a stabilisation fund in agreement with the state governments. The amount, she said, had a balance of $148 million which would be used to augment shortfalls in revenue to all tiers during difficult times.

She also put the balance of the Excess Crude Account at $2.457 billion.

The newly elected Chairman of the Commissioners of Finance Forum, Alhaji Mahmood Yinusa of Adamawa State said the state governments were interested in growing their Internally Generated Revenue (IGR) to a point where they would pay their workers from the collections while allocations from FAAC would be committed to capital projects in the respective states.