FAAC: Nigeria records N65.2bn increase in February allocation
The Federal Account Allocation Committee (FAAC) on Tuesday reported N65.2 billion increase in the revenue shared by the Federal, state and local government for February.
FAAC Chairman, Mohmoud Isa-Dustse disclosed this to finance and business correspondents at the end of FAAC meeting in Abuja.
“The grand total of the amount distributed for this month comes to N465.149 billion which is higher than last month figure by N65.129 billion,” he said.
Recall that for the month of January N400 billion was distributed among the thee tiers.
Reading the communiqué of the committee, Mohmoud attributed the increase in revenue to recent increase in Crude Oil export volume and increase in Global Crude Oil Prices from $47.30 to $49.56 per barrel.
“There was revenue increase of $74.91 million in Federation export sales due to rise in Crude Oil export volume by 1.49 million barrels. Similarly there was increase in the price of Crude Oil from $47.3 to $49.6 per barrel.
He noted that the short-down of pipelines for repairs and maintenance due to leakages and sabotage did not impair the follow of revenue.
PPT collection increased significantly. While revenues from Companies Income Tax (CIT), Value Added Tax (VAT), Import duty and Royalty decrease slightly.
The total Statutory Gross Revenue for the period under review is N282.4 billion. This represents an increase in N57.6 billion when compared to the previous month.
According to the chairman, “after the cost of collection deductions by Federal Inland Revenue Service (FIRS), Nigerian Customs Service and DPR, the Net Statutory Allocation (NSA) stood at N273.45 billion.
The NSA is distributed among the three tiers in accordance to the revenue sharing formula.
“The Federal government received N133 billion representing 52.7%. States got 67.5 billion representing 26.7%. while the local government took the remainder N52.1 billion representing 20.6% less derivation. The sum of N20.62 was for derivation representing 13%”.
FAAC meeting holds month to review and distribute revenues accruing to the nation.