FG, States, LGs share N647bn
…FAAC, NNPC to reconcile oil revenue figures
The federal government and the other two tiers of government have shared the sum of N647. 390 billion.
The sum represented federation revenue and proceeds of the Value Added Tax for the month of February.
The funds were shared by the Federation Accounts Allocation Committee (FAAC) at the end of its meeting in Abuja, Wednesday.
It followed days of disagreement over receipts into the Federation Account, which the state Commissioners of Finance initially rejected and insisted that the Nigerian National Petroleum Corporation (NNPC) must pay more oil revenue into the account.
The Minister of Finance, Mrs. Kemi Adeosun, who spoke to journalists at the end of the Committee’s meeting, said the N647.39 billion distributed to the three tiers of government was N11.836 billion higher than the N635.554 billion shared in the previous month.
Statutory revenue accounted for N557.943 billion of the total revenue distributed on Wednesday while Value Added Tax accounted for the balance of N89.447 billion.
On the States’ dispute with the revenue paid by the Nigerian National Petroleum Corporation into the Federation Account, the Minister said the FAAC would reconcile the revenue figures with the top management of the Corporation led by the Group Managing Director, Mr. Maikanti Baru, within the week.
Her words, “The NNPC is a major channel of our mineral revenue and by that fact there would be issues from time to time. Some issues have been raised by the States on the revenue paid into the Federation Account by NNPC.
”Some of the issues that were raised have actually been cleared but of course, there are new issues that arise. I think that is part of reconciliation, accountability and transparency.
“ We did that overnight, speaking to the governors and we took a decision to go ahead and still of the view that there are issues and I’m sure within the next 48 hours I would meet with NNPC GMD or his representatives”.
” I think this is a healthy process. Questions must be asked, that is what accountability is all about. We would get to the bottom of the issue so that we can move forward. I think its a healthy development. I’m confident we would resolve all the outstanding issues”,
In his remarks, the Chairman of Finance Commissioners’ Forum, Mahmoud Yenusa, explained that the reconvening of the meeting had become necessary to enable States pay workers their salaries before the Easter break.
His words, “The account submitted by the NNPC is not acceptable to the States but we are willing to jointly reconcile the revenue figure with the leadership of NNPC.
“We have agreed last night to hold the meeting as it were, move on to our respective states and pay salaries so that everybody will celebrate the Easter. Be that as it may, the account as submitted by NNPC is still not acceptable to us.
“We will sit down with NNPC to ensure all the grey areas are trashed out. What we expected from NNPC is more than what was submitted . We the commissioners of state are not happy the way NNPC is running this business. We are major shareholders in this business but yet we are not happy with the way NNPC is handling it.
“We won’t take this anymore. NNPC will have to sit up and do its job. We are not taking this anymore. We would not come here, spend days without holding the meeting. So in the spirit of Easter, we would take this account, go home with it; pay salary and come back to meet NNPC to pay us our balance. We have o find out wherever the error is.”
Details of the revenue distribution showed that the Federal Government received N257.927 billion of the net statutory revenue as against the N249.366 billion received in the previous month, while the State and Local Governments’ share of the statutory revenue was N130.824 billion and N100.86 billion, respectively.
The States and Local Governments had last month got N126.482 billion and N97.512 billion, respectively. The nine oil producing states received 13% derivation amounting to N57.356 billion.
The 36 States received Value Added Tax of N42.935 billion compared with N46.39 billion received in the previous month, while the Federal and Local Governments received VAT of N12.88 billion and N30.054 billion, respectively.
The Accountant General of Federation, yesterday, signed the mandates for the Central Bank of Nigeria to pay the approved revenue allocations into the accounts of the Federal, State and Local Governments.