Nigeria’s three tiers of government suffered another blow as the amount shared for the month of March from the federation account declined sharply to N299.747 billion from N338.765 billion shared the previous month.
This is the lowest amount shared by the three tiers of government in the past five years.
Addressing journalists at the end of the Federation Account Allocation Committee (FAAC) meeting in Abuja yesterday, the permanent secretary of the Federal
ministry of Finance, Mahmud Dutse stated that the federal state got N109.113 billion; state governments received N55.344 billion; Local Governments got N42.668 billion while the oil producing states received N19, 750 billion as 13 percent derivation.
To make up the numbers N61. 665 were shared from Value Added Tax proceeds with the federal government pocketing N9.250 billion; States, N30.833 and local governments, N21.583.
Speaking on the development, Dutse noted that the statutory revenue of N232. 619 billion received for the month was lower than the N270.499 received in the previous month by N37.880 billion. The fall in revenue, he said was due to shut-in and shut-down of production for repairs and maintenance which continued during the period.
Dutse added that there was slight increase in production of crude oil in December 2015 but the resulting income was marginal due to a 10 percent drop in crude oil prices.
The drop in the average price of crude oil from $43.40 in November to $39.04 in December, 2015 resulted in revenue loss of $22.55 million. Another reason for the fall in FAAC revenue Dutse explained “was the significant decline in incomes from Petroleum Profit Tax and Companies Income Tax.
The sum of N6.330 billion was refunded by the Nigeria National Petroleum Corporation (NNPC) to the federal government of Nigeria and there was an exchange gain of N2.894 billion which was proposed for distribution.
It was reiterated that the balance in the Excess Crude Account still stands at $2.259 billion.
Details from the meeting showed that the federal government, which collected about N127.2 billion in February as 52.68 per cent of the total revenue, would have to make do with a reduced ration of N109.11 billion for the month.
Equally, states, entitled to 26.72 per cent, would collect only N55.34 billion this month, as against the N64.52 billion they collected the previous month, while local governments, which took N49.4 billion in February for 20.6 per cent of the total revenue would share only N42.67 billion for the month.
The nine oil producing states would share only N19.75 billion as 13 per cent derivation for the month as against the N22.78 billion went received in February.
Out of a total additional earning from the value added tax, VAT of N61.67 billion, the federal government got N9.25 billion, or 15 per cent; states N30.83 billion, or 50 per cent, and local government N21.58 billion, or 35 per cent.
Latest report by the National Bureau of Statistics, NBS showed that states of the federation were not finding life easy, with the impact of the declining global oil prices putting increasing pressure on their purses.
The report said out of the 36 states, only 11 were able to realize improved internally generated revenue, IGR, in 2015 to boost their effort to provide service to their people.
While Ogun, Anambra, Borno, Edo, Bauchi, Abia, Kogi, Nasarawa, Niger, Taraba and Sokoto states were the only states that bettered their 2014 records of IGR generation performance in 2015, 24 others performed poorly.
They included Kwara, Imo, Bayelsa, Adamawa, Akwa Ibom, Benue, Cross River, Delta, Ekiti, Enugu, Gombe, Jigawa, Kaduna, Kano, Katsian, Kebbi, Lagos, Ondo, Osun, Oyo, Plateau, Rivers, Yobe, and Zamfara. Ebonyi state was the only state whose IGR records were not available.
NAIJA247NEWS
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