The Federation Account Allocation Committee, FAAC, On Tuesday, January 23, 2018, approved N655.177 billion as distributable revenue for three tiers of government as allocation for the month of December. The amount, confirmed by the minister of finance, Kemi Adeosun, who doubles as chairman of FAAC, comprises statutory allocation of N540.446 billion and Value Added Tax ( VAT) of N80.604 billion and forex equalization N30.768 billion.
The amount shared was higher compared to last month’s allocation of N514.413 billion. Of the N655.177 billion shared, the Federal Government got the highest amount to the tune of N278.735 billion, states N175.547billion; local government councils N132.481 billion while the sum of N51.738 billion was shared as 13 percent derivation by oil-producing states. The balance in Excess Crude Account ( ECA) is$ 2.317 billion.
Giving insights into figures, the Minister said that,”the decrease in crude oil export sales by 0.59 million barrels resulted in decreased revenue from export sales of $11.65 million. However, the average price of crude oil increased from $52.07 to $56.83 per barrel during the period under review “.
The Minister explained that, within the period under review, there were shut-ins and shut-down at various terminals due to theft activities and for continuous repairs. Meanwhile, Chairman of Commissioners of Finance Forum, Mallam Mahmoud Yunusa, said states have adopted the principle of efficiency in their operations.