FG, states, LGs share N502bn

[PeoplesDaily]

By Abdulwahab Isa

After a protracted stalemate, the Federal Account Allocation Committee (FAAC) yesterday approved for sharing, sum of N502.617 billion as statutory revenue for three tiers of government for the month of May.

The government also yielded to the demand for arrears by states' Commissioners of Finance by approving N156 billion being February arrears to be shared by the three tiers with a commitment to pay additional N92 billion representing May arrears at a future date.

Minister of state for Finance who doubles as Chairman of FAAC Dr. Yerima Ngama confirmed the figures yesterday at an interactive session with the media shortly after FAAC session.

He put the gross revenue received during the month at N590.777 billion, an amount he said was lower than the N621.070 billion received in the previous month by N30.293 billion.

He attributed the low revenue received for the month to the drop in crude oil production and lifting operations occasioned by Force Manjeur declared at Bonny terminal and the continuous theft of crude and vandalism.

The Minister said there was an increase in the revenue from non-oil sector , a development he attributed to increase in payment by companies filling returns.

The sum of N7.617 billion refunded by the Nigerian National Petroleum Corporation(NNPC) was also distributed in addition to N35.549 billion being SURE-P fund that was also approved for distribution to the beneficiaries.

For Value Added Tax(VAT) , a gross revenue of N74. 873 billion was available for distribution as against N54.471 billion shared in the month of April.

Of the amount shared, the Federal got the highest allocation of N235.778 billion followed by states which got N119.590 billion while the Local Government Councils got N92. 199 billion.

The sum of N48.874 billion was approved for sharing as 13 derivation for the oil producing states.

Speaking on the impasse that trailed FAAC meeting last week, the Chairman of the Forum of Commissioners of finance, Mr. Timothy Odan said all the issues that forum raised had been tackled by the President, Dr. Goodluck Ebele Jonathan at a meeting had with the Governors.

The monthly FAAC meeting, a forum for considering revenue accruals to the federation accounts for sharing among the three tiers ended a stalemate last Thursday as Finance Commissioners walked out of the session citing willful renege on several agreement previously reached by the session.

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