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FAAC: FG strategies with States on boosting IGRs

By on December 15, 2013

As the persistent shortfall in revenue continue s to cut deep into the nation’s resources, the federal government has begun strategising with state governments on how to boost internally generated revenue (IGR).

Addressing journalists shortly after the Federal Account Allocation Committee (FAAC) meeting, on Thursday, Minister of State for Finance, Dr Yerima Lawan Ngama said the issue of IGR for the states was discussed extensively, adding that strategies had been agreed on to boost states’ IGR.

He said, “We have discussed so many issues and we have decided to work towards increasing our IGR at the state level.
“The states have to sit up in generating more revenue. We have noted the states that are doing well and the ones not doing well.

“We have decided to discuss the strategies so that those doing well will help those that are not doing well.”
Meanwhile, the committee Thursday night allocated the sum of N675.65bn to the three tiers of government. The allocation, which is for the month of November was N107.23bn higher than the N568.4bn shared in the preceding month of October.

In a communique issued shortly after the committee’s meeting and signed by the Accountant General of the Federation, Mr Jonah Otunla, the committee said that the sum of N632.48bn was distributed under two main sub heads.

They are statutory allocation of N540.75bn and Value Added Tax of N91.73bn.
For the statutory allocation, it said that after deducting cost of collections due to the Nigerian Custom Service (N2.96bn) and the Federal Inland Revenue Service (N2.58bn), the balance of N535.20bn was shared based on the allocation formula.

Of this amount, the federal government received N252.23bn representing 52.68 per cent; states N127.93bn or 26.72 per cent while the 774 local governments area was allocated N98.63bn or 20.6 per cent.
The balance of N56.39bn was allocated to the oil producing states based on the 13 per cent principle of derivation.

 

 

[Daily Times]