FAAC Allocation Rises as FG, States Share N637bn for August

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There was a significant increase in revenue for the month of August 2017, as a total of N637.704 billion has been distributed as Federal Allocation among the federal government, state governments and local government areas.

The communiqué issued by the sub-Committee of Federation Account Allocation Committee (FAAC) of the Office of the Accountant-General of the Federation at the end of the meeting held today in Abuja, indicated that the gross statutory revenue received for the month is N550.992 billion, which was higher than the N387.319 billion received in the previous month by N163.673 billion.

The shared amount comprised the month’s Statutory distributable revenue of N550.992 billion and Value Added Tax of N86.712 billion, totalling N637.704 billion.

Accordingly, from net statutory allocation, the federal government received N260.609 billion representing (52.68 per cent); states received N132.184 billion (26.72 per cent); local government councils received N101.908 billion representing (20.60 per cent); while oil producing states received N41.977 billion as 13 per cent derivation revenue.
Furthermore, from the revenue available from the Value Added Tax (VAT), federal government received N12.487 billion (15 per cent); states received N41.622 billion (50 per cent) while the local government councils received N29.135 billion (35 per cent).

The communique further explained that there was a decrease in the average price of crude oil from $51.05 to $50.44 per barrel but a significant increase in export volume by 0.85 million barrels, which resulted in increased revenue from export sales revenue by about $41 million.

There was also shut-in and shut-down of pipelines due to the activities of vandals as well as for maintenance which impacted negatively on production. Furthermore, the force majeure declared at the Forcadose terminal since February, 2016 was still in place. Significant increases were also recorded in companies income and petroleum profit tax while import and excise duties and Value Added Tax recorded marginal increases.
Meanwhile, the balance of the excesses crude account stood at $2.309 billion.