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How FG, states, Local Governments shared N511.799bn in July

Federal government and other tiers of government Wednesday, shared the sum of N511. 799 billion for the month of July, 2015.

The gross revenue of N433.584 billion was received for the month under review, which was lower than the N485.952 received in the previous month by N52.368 billion.

At a Federation Accoint Allocation Committee (FAAC) meeting held Wednesday night, the Permanent Secretary in the ministry of Finance, Mrs. Anastasia Nwaobia, said the shut down and shut-in of production for maintenance and emergency repairs as well as declaration of Force Majeure by SPDC were the major issues that negatively impacted crude oil revenue in view.

She also said there was revenue loss of $22.53 million as a drop in average price of crude oil from $65.76 in May to $61.27 in June, 2015.

A breakdown of the figure shows that N433.584 billion was received from statutory allocation, N74.945 billion came from Value Added Tax (VAT).

Also, there was exchange gain of N6.409 billion which was also distributed.

Meanwhile, the sum of N6.330 billion was refunded by NNPC to federal government.

Further breakdown of the figures shows that Federal Government received N202.111 billion from statutory allocation, which represents 52.68 percent, while states and local governments received N102.513 billion and N79.033 billion respectively, representing 26.72 per cent and 20.60 per cent.

The Federal Government received N10.792 billion from VAT, the states and local governments got N35.974 billion and N25.181 respectively.

Oil producing states shared N25.181 billion as the 13 percent derivation against 21.837 billion shared in the previous month.

The Permanent Secretary, however told journalists that the Federal Government introduced the Single Treasury Account policy to further check leakages in the government revenue.

‘‘The Single Treasury Account policy is going to ensure that all revenue go into single account.
With all revenue going into a single account, Federal Government will have an over view of available monies in its account and plan expenditure. The leakages where people use monies in their various accounts will no longer be there and will enhance proper management of government resources.’’

Under the excess crude account, ECA, she stated that the reserve stood at $2.257 billion as at yesterday.

On why salaries are coming late, Nwaobia said, ‘‘salaries used to come early when we were not having revenue challenges, now we are having revenue challenges, salaries can’t be paid early as it used to be.
‘‘We need enough time to prepare before salaries can be paid now we are having revenue challenges.

‘‘We are hoping that when revenue improves and we hold FAAC meetings at the second week of the month, salaries will be paid much earlier. We hope civil servants will understand.’’
Responding to question on the rumoured exemptions of some government agencies from the STA policy, the Accountant general of the Federation, Ahmed Idris said there was no exemption.

‘‘STA is a government policy and for now, all agencies are funded from the budget and those partially funded are expected to key in. I am not away of any exception, we are coming up with adequate guidelines for the entire process and for the enlightenment of the general public. I am away agencies are complying.’’

Source: Vanguard

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