FG, States, LGs Share N619.857bn for February

  • FGN March bond auction oversubscribed

Ndubuisi Francis in Abuja

The Federation Account Allocation Committee (FAAC) shared a total of N619.857 billion to the three tiers of government for the month of February as the monthly meeting of the Committee ended in Abuja Wednesday.

This is coming as the FGN Bond Auction for March 2019 conducted by the Debt Management Office (DMO) Wednesday with N100 billion Bonds on offer, was oversubscribed as was the case in January and February 2019.

A communique issued by FAAC indicated that from the total distributive revenue of N619.857 billion, the federal government received N257.681 billion, states – N169.925, and local government councils – N127.722 billion.

Oil producing states received N50.946 billion as 13 per cent derivation revenue while the revenue generating agencies got N13.582 billion as cost of revenue collection.

The total distributable revenue of N619.857 billion comprised revenue from various sources, including distributable statutory revenue, Value Added Tax (VAT), Exchange Gain Tax, Excess Bank Charges recovered and Forex Equalisation.

The gross statutory revenue for February was N478.434 billion; VAT revenue was N96.389 billion; Exchange Gain–N0.858 billion and Forex Equalisation revenue -N44.176 billion.

The N478.434 billion gross statutory revenue for the reference month was lower than the N505.246 billion received the previous month by N26.812 billion.

The gross revenue from VAT was N96.389 billion as against N104.468 billion distributed in the previous month, resulting in a decrease of N8.079 billion.

From the total revenue from VAT, the federal government received N13.880 billion, states received N46.267 billion, local government councils got N32.387 billion while the revenue generating agencies received N3.855 billion.

The communique stated that for the month of January 2019, the federation crude oil sales increased by about 46 per cent, resulting in increased federation revenue from $425.00 million previously to $574.95 million.

The Excess Crude Account (ECA) as at March 27, 2019 stood at f $183 million.

Meanwhile, the FGN Bond Auction for March 2019 conducted by the Debt Management Office (DMO) yesterday with N100 billion bonds on offer, was oversubscribed was the case in the January and February 2019.

The DMO offered three instruments at the Auction for 3, 7 and 10-year tenors and subscriptions for the three instruments was in excess of N148 billion for competitive bids.

Non-competitive bids valued at N92.6 billion were also received, taking the total subscriptions across the 3 tenors to over N240.6 billion.

The trend of investors’ preference for the longer tenured instrument continued, with the 10-year bond significantly oversubscribed with a bid-to-cover ratio five.

The DMO said in a statement that allotments were made to successful bidders at the rates of 13.5 per cent for the five-year, 13.5 per cent for the seven-year and 13.5 per cent for the 10-year bonds, which are considerably lower than the allotment rates for the February 2019 Auction.

The total amount allotted to both competitive and non-competitive bids for the three instruments was N121.95 billion.