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Finance ministry explains N493.8bn allocation for July

By on August 29, 2016

A total of N493.828bn has been shared as federal allocation for the month of July 2016 by the Federal Government, state governments and local government councils, the Federal Minister of Finance has said.

According to the figures released by Office of the Accountant General of the Federation, the gross statutory revenue including solid minerals was N275.102bn while the net allocation was N258.151bn. The gross value added tax was N66.987bn and the total distributable revenue is N335.759bn.

The shared amount comprised the month’s statutory revenue of N258.151bn, Value Added Tax of N66.987bn, exchange gain of N70.037bn, exchange gain differential claim of N36.494bn for the month of May, 2016 , additional distribution of N50.165bn from excess PPT and N1.373bn as excess bank charges recovered from 2008 to 2012. There was also a N6.330bn refund to the Federal Government by the Nigerian National Petroleum Corporation.

Consequently, from statutory revenue, the Federal Government received N129.212bn (52.68 per cent); states received N65.538bn (26.72 per cent); local government councils received N50.527bn (20.60 per cent); while the oil producing states received N12.874bn as 13 per cent derivation revenue.

Furthermore, from the revenue available from the VAT, Federal Government received N9.646bn (15 per cent); states received N32.154bn (50 per cent), while the local government councils received N22.508bn (35 per cent) and less four per cent cost of collection to the Federal Inland Revenue Service. Also the N50.165bn from the excess petroleum profits tax is to be shared among the three tiers of government, according to the revenue allocation formula.

The communique from the FAAC sub-technical committee also explained that there was a decrease in the volume of crude oil export by 2.8 million barrels in April 2016 due to a subsisting force majeure at Forcadose terminal.

 

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