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Government revenue dips by N33bn, FAAC shares N387bn

By on December 17, 2016

The Federation Accounts Allocation Committee on Thursday allocated a total of N386.9bn to the three tiers of government for the month of November.

The amount, when compared to the N420bn distributed in October, represents a decline of N33.1bn.

Addressing journalists shortly after the meeting, the Minister of Finance, Mrs. Kemi Adeosun, attributed the decline to a drop in crude oil export by 0.34 million barrels per day during the period under review.

She said despite the fact that the average price of crude oil increased from $46.54 to $47.08 per barrel in November, the decline in oil production volume impacted negatively on revenue.

Represented by the Accountant General of the Federation, Idris Ahmed, the minister said, “A brief force majeure was declared at the Bonny Terminal, while the force majeure at Forcados, Qua Iboje and Brass terminals were still in place.

“Federation revenue was low as a result of shut-in and shut-down of pipelines for repairs and maintenance due to leakages and sabotage; however, Companies’ Income Tax and Value Added Tax recorded marginal increases.”

Adeosun said after deducting the cost of collection to the revenue generating agencies, the Federal Government received N97.9bn, representing 52.68 per cent of the total available for sharing; the states got N49.6bn, representing 26.72 per cent; while the local governments received N38.2bn or 20.60 per cent of the amount distributed.