FAAC shares N443.663bn for July

The Federation Account Allocation Committee (FAAC) meeting has distributed a sum of N443.663 billion to the beneficiaries for the month of July 2016.

Permanent Secretary in the Federal Ministry of Finance, Dr. Mahmoud Isa-Dutse who addressed the press shortly after the meeting in Abuja on Thursday said this figure was 11 percent short of the N509.106 billion shared in June.

Isa-Dutse attributed this shortfall to activities of Niger Delta militants adding “there was a revenue decrease of N102.17 billion in Federation Export Revenue despite the increase in average price of crude oil from $38.63 in March to $42.21 per barrel in April, 2016.

“Income Duty recorded a marginal increase but the performances of Companies Income Tax (CIT) and Petroleum Profit Tax (PPT) declined drastically due to the fact that Joint Venture Companies had filed their actual annual returns and made payments in the month of June while Blue Chip Companies made their tax payments before the 30th June, 2016 deadline.”

Of the total amount shared, N268.772 came in from statutory revenues (tax, customs and mineral), N66.987 from value added tax, N70.037 from foreign exchange gain, N36.494 billion from exchange gain arrears from May and N1.373 billion recovered from excess bank charges.

The 52.68 percent belonging to the Federal Government then amounted to N258.151 billion; while the 26.72 share of states was N65.538; and local the 774 local governments shared N50.552 being 20.60 percent of the total.

Oil producing states except Lagos shared N12.874 billion being 13 percent allotted as derivation fund, according to Isa-Dutse while Lagos will start when proceeds from sale of crude from the state comes into Federation Account.

Federal Inland Revenue Service (FIRS) collected N6.056 billion representing four percent of the total amount it collected; Nigerian Customs Service (NCS) took N3.238 or seven percent cost of total revenue it raked in while the Department of Petroleum Resources (DPR) also collected N1.327.