FAAC allocation to FG, states, LGAs dips by N68.055bn
From Uche Usim, Abuja
Monthly subvention from the Federation Accounts Allocation Committee (FAAC) to the three tiers of government fell by N68.055 billion between September and October 2021.
In October, the Federal Government, 36 states and the Federal Capital Territory (FCT) and the 774 Local Governments Areas shared N671.910 billion as against a September figure of N739.965 billion. Reasons for the huge shortfall could be traced to a sharp dip in crude oil production in October, which fell to 1.35 million barrels per day as against 1.40 million bpd output recorded in September. Nigeria is currently battling insufficient funds as it needs to immediately reopen some oil fields forcefully shut down during the COVID-19 pandemic last year.
Group Managing Director, of Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, recently said crude oil production will hit 1.8mpd by year end to further swell government’s purse.
According to Mr Henshaw Ogubike, Director, Information, Press and Public Relations, Office of the Accountant General of the Federation, the FAAC meeting for November was held in Lagos State.
He noted that the N671.910 billion total distributable revenue comprised distributable statutory revenue of N363.849 billion, distributable Value Added Tax (VAT) revenue of N154.844 billion, exchange gain of N3.217 billion and N150 billion augmentation from the non-mineral revenue.
In October 2021, N24.591 billion was the total deduction for cost of collection and N30.864 billion was total deduction for statutory transfers, savings and refunds. The balance in the Excess Crude Account (ECA) was $60.860 million.
Ogubike confirmed that from the total distributable revenue of N671.910 billion, the Federal Government received N284.292 billion, State Governments got N209.838 billion, while Local Government Councils received N156.282 billion. The sum of N21.498 billion was shared to the relevant states as 13 percent derivation revenue.
“The distributable statutory revenue of N363.849 billion was available for the month. From this amount, the Federal Government received N180.551 billion, State Governments got paid N91.578 billion with the Local Government Councils receiving N70.603 billion. About N21.118 billion was shared to the relevant States as 13 percent derivation revenue”.
