The Federal Accounts Allocation Committee (FAAC), seems to have reached a temporary compromise in its impasse that has lasted for several weeks with the distribution of N668.898 billion to the three tiers of government for the month of May. This was revealed by the Director of Information at the Federal Ministry of Finance, Hassan Dodo in Abuja.
The Director of Information explained that the sharing of revenues for May, which was meant to be distributed in June, was put on hold because of the disagreement on remittances by the revenue generating agencies, especially the Nigerian National Petroleum Corporation (NNPC).
He added that the money was distributed due to the urgent need to cushion the undue hardships being experienced by State Government workers across the country while reiterating the efforts of the Government in dealing with the remittance issues regarding the NNPC with the FAAC.
The Director had revealed that the N668.898 billion distributed is made up of the statutory distributable sum of N575.475 billion and N93.423 billion from the Value Added Tax (VAT).
“The total revenue realised for the month, was shared in line with the extant formula as follows: Federal Government – N282.223 billion; State Governments – N181.167 billion; and Local Government Councils – N136.490 billion. The Oil Producing States received N53.071 billion as 13 per cent derivation. The sum of N15.947 billion was paid to the revenue generating agencies as costs of collections.”
He further explained that the statutory revenue of N575.475 billion received for the month of May was lower than the N613.057 billion received for April by a total of N37.582 billion.
He took note of the fact that from the total statutory revenue of N575.475 billion, the Federal Government was given N268.770 billion, the states – N136.324 billion, Local Government Areas – N105.100 billion, the oil-producing states – N53.071 billion, while the revenue generating agencies received N12.210 billion as costs of collections.
“For the month of May 2018, the total revenue of N93.423 billion from the Value Added Tax (VAT) was N5.458 billion higher than the N87.965 billion distributed in April 2018. From the total of N93.423 billion, the Federal Government received N13.453 billion; the states received N44.843 billion; the Local Government Councils received N31.390 billion, while N3.737 billion was received by the revenue collecting agencies,” the director further revealed in his statement.
The monthly FAAC meeting held in June had ended in a stalemate as a result of the disagreement on remittances by the NNPC in particular. The crisis deepened with the Governors Forum also rejecting NNPC remittances describing them as inaccurate and unacceptable