FG to Augment January FAAC Allocation with N50bn FX Equalisation Fund

Ahmed Idris

Ndubuisi Francis in Abuja

The federal, states and local governments are expected to share a total of N660.368 billion from the Federation Account for the month of January as the Federation Account Allocation Committee (FAAC) concluded its meeting in Abuja Wednesday.

The Accountant General of the Federation, Ahmed Idris, who briefed journalists after the meeting, said although the sum of N610 .368 billion was available for sharing by the three tiers of government, approval was being awaited from the Minister of Finance for an additional N50 billion from the Foreign Exchange Equalisation Account to bring the total distributable to N660.368 billion.

He explained that the country experienced revenue drops both in oil and non-oil components during the month under review (January), adding that the Minister

of Finance, Hajiya Zainab Ahmed who was absent at yesterday’s FAAC meeting was expected to approve N50 billion from the Foreign Exchange Equalisation Account to augment the January allocation.

Of the N610.368 billion approved , the federal government received N252.412 billion; States –(N170.541 billion), Local Government Councils received N127.923 billion while the oil producing states received N41.992 billion as 13 per cent derivation revenue. Revenue generating agencies also received N17.500 billion as cost of revenue collection.

The month inn review recorded gross revenue of N505.246 billion, which was lower than the N547.462 billion received in the previous month by N42.216 billion.

The gross revenue from Value Added Tax (VAT) was N104.468 billion as against N100.760 billion distributed in the previous month, resulting in an increase of N3.708 billion.

From the total gross revenue from VAT, the federal government received N15.044 billion, States=N50.145 billion, and Local Government Councils — N35.102 billion. Revenue generating agencies received N1.178 billion.

Idris explained that for the month of January 2019, the federation crude oil sales increased by 2.4 million barrels, resulting in increased federation revenue by $149.94 million despite a drop in price of crude oil from $81.06 to $75.00 per barrel.

Oil royalty, import and excise duties increased substantially while Companies Income Tax (CIT) and Petroleum Profit Tax (PPT) decreased marginally.

Excess Crude Account (ECA) currently stands at $249 billion.