FG, states, councils share N250.04b for February
From Mathias Okwe and Emeka Anuforo, Abuja
THE Federation Account Allocation Committee (FAAC), at the weekend, approved the sharing of N250.04 billion revenue realised in February 2009 and $1.5 billion from Foreign Excess Crude account among the three tiers of government.
The $1.5 billion is to be shared in its naira equivalent.
The three tiers of government had in the preceding month shared N285.58 billion, made up of Statutory Allocation of N241.33 billion and VAT of N44.25 billion.
The FAAC meeting, held in Makurdi, Benue State, was chaired by the Honourable Minister of State for Finance, Mr. Remi Babalola.
The amount shared consisted of Statutory Allocation of N215.86 billion and five per cent Value Added Tax of N34.18 billion.
The National Economic Council (NEC) had on March 10, 2009 approved that the sum of $1.5 billion be shared among the federal, state and local governments from the excess crude account.
The approval was to mitigate the effect of the reduction recorded in the federal allocations in January and February, this year.
For the $1.5 billion from the foreign excess crude, the Federal Government will get 52.68 per cent; States, 26.72 per cent; and Local Councils, 20.6 per cent and 13 per cent was set aside for the oil producing areas."
Accountant-General of Federation (AGF), Alhaji Ibrahim Dankwambo, blamed the deficit of N35.54 billion in the revenue allocation to the three tiers of government, when compared with revenue shared in January 2009, to the decline in crude oil prices in the international market and the reduction in production quota of the Organisation of Petroleum Exporting Countries (OPEC).
He explained that Nigeria's production quota was cut-back to 1,673,000 barrels per day (bpd) in January 2009 from 2,050,000 bpd in December 2008.
He said: "In addition, there was also a complete shut down of Tebidaba Flow Station and subsequent loss of about 30,000 bpd as a result of another attack by militants."
Dankwambo also disclosed that N2.77 billion and N1.51 billion were paid to Federal Inland Revenue Service and Nigeria Customs Service respectively, being four and seven per cent cost of collection.
Out of the statutory allocation of N215.86 billion, the Federal Government received N102.53 billion (about 52.68 per cent), a decline of N12.15 billion when compared with the N114.68 billion it received in the preceding month.
The 36 state governments got N52 billion (about 26.72 per cent) from statutory allocation, a drop of N6.17 billion as against the previous month's receipt of N58.17 billion, while the 774 local government councils were allocated N40.09 billion.
The 13 per cent derivation accounted for the balance of N21.24 billion and was re-distributed among the nine oil-producing states of Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers.
The states received the lion's share of the VAT amounting to N17.09 billion (about 50 per cent), a decrease of N5.03 billion when compared with the preceding month's level of N22.12 billion.
The states were closely followed by the local government councils, which received N11.96 billion (about 35 per cent), while the Federal Government's VAT amounted to N5.13 billion.
