• Thu. Nov 21st, 2024

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FAAC: Federation revenue declined by N107bn in July

Federal, states and local governments on Thursday shared N714.8 billion revenue generated in July, the News Agency of Nigeria (NAN) reports.

The figure indicated a decline of N107.1 billion when compared to what was generated in June.

The Minister of Finance, Mrs Kemi Adeosun, while briefing newsmen in Abuja on the outcome of the monthly Federation Account Allocation Committee (FAAC) meeting, highlighted several factors that impacted negatively on the month’s income.

“Crude oil exports sales volume was 3.74 million barrels showing an increase of 0.17 million barrels when compared with the previous month sales of 3.57 million barrels.

“Despite the improved revenue, production was negatively affected in the period by shut-ins and shut-down at various terminals for repairs and maintenance of ageing facilities.

“The value Added Tax (VAT), import duty, Companies Income Tax (CIT) and Oil Royalty decreased, while Petroleum Profit Tax recorded an increase,” she said.

Adeosun, giving a breakdown of the revenue generated, said that N376.14 billion was generated as mineral revenue, while N221.8 billion came from non-mineral resources.

To this end, the minister said that Federal Government received N269.8 billion, states N136.85 billion and local government N105.5 billion.

She said that N44.96 billion was also shared among the oil producing states, representing 13 per cent of the oil revenue generated in the month of July.

Adeosun said the equivalent of N25 million was transferred into the Excess Crude Account (ECA), adding that the balance in the ECA account was 2.31 billion dollars.

The minister also gave an update on the review of the revenue reporting template between the NNPC and the FAAC as directed by President Muhammadu Buhari.

She announced that the reporting template would be ready before the next FAAC meeting in September.

It will be recalled that President Muhammadu Buhari ordered the review of the revenue reporting template between the NNPC and the FAAC as a lasting solution for the frequent disagreements between the two parties over revenue collections.

By News Editor

Our News Editor, Muyiwa is an information management expert and Development Blogger with more than a decade experience in investigative reporting and journalism. He is passionate about human angle stories to all social issues in Nigeria and Africa.

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