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FG, states, LG share N641.38bn from federation account

By BusinessNews Staff on April 16, 2014

The Federation Accounts Allocation Committee on Tuesday night allocated the sum of N641.38bn to the three tiers of government from the federation account.

The amount, which is the allocation for the month of March, represents an increase of N81m from the N641.299bn distributed for the month of February.

In a communique issued after the meeting, which was signed by the Accountant General of the Federation, Mr Jonah Otunla, the committee said allocation was made to the three tiers of government under four major sub-heads.

They are statutory allocation, N534.907bn; Value Added Tax, N63.307bn; Subsidy Re-investment and Empowerment Programme, N35.549bn and refund of debt by owed the federation account by the Nigerian National Petroleum Corporation, N7.617bn.

The communique said during the month under review, gross revenue of N614.358bn was received, noting that the amount was lower than the N666.745bn received in the previous month by N52.387bn.

The committee attributed the decline in revenue to production shut-in at Qua Iboe terminal and shutdown of Forcados.

It added that oil theft and some other repair works on pipeline leaks at Bonny and Brass terminals also led to a drop in revenue.

Of the statutory revenue, the Federal Government, after deducting cost of collection of about N4.9bn, received N249.084bn or 52.68 per cent; states government got N126.339bn while the 774 local governments are to share N97.402bn representing 20.6 per cent.

Similarly, the oil producing states were allocated an additional N52.27bn based on the 13 per cent principle of derivation.

For VAT distribution, the Federal Government, after deducting cost of collection of N2.53bn, received N9.116bn representing 15 per cent; states got N30.388bn or 50 per cent while the local governments received N21.27bn representing 35 per cent.

[Punch]

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