FG, states, LGAs share N637.7bn in September

The federal, states and local government areas shared a cumulated N637.704 billion in September this year.

The Federal Accounts Allocation Committee (FAAC) who made the disclosure Thursday the money came from Value Added Tax (VAT), Petroleum Profit Tax (PPT) and Company Income Tax (CIT) and dwarfs the N467.852 billion shared by the three tiers of government in August.

Ahmed Idris, the Accountant General of the Federation (AGF), told newsmen in Abuja after the monthly FAAC meeting. He said out of the N637.704 billion shared, the gross statutory revenue component was N550.992 billion. It was higher than the N387.319 billion received in previous month by N163.673 billion.

“Of net statutory shared, Federal Government got highest allocation in the sum of N260.609 billion followed by states with N132.184 billion and the 774 local government councils which got N101.908 billion as oil producing states shared N41.977 billion,” he disclosed.

Giving further insights, the AGF attributed significant increase in the revenue shared in the month under review to increase in CIT and PPT.

“There was a decrease in the average price of crude oil from $51.05 to $50.44 per barrel but because of significant increase in export volume by 0.85 million barrels, export sales revenue for the federation increased by $41 million.

“The challenges of shut-ins and shut-downs at terminals due to leakages and the subsisting force majeure declared at Forcados terminal since February 2016 caused minimal negative impact on crude oil operations during the period. There were significant increases in revenue from Companies Income and Petroleum Profit Taxes. Also, Import and Excise Duties and VAT recorded marginal increases,” Idris explained.

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