The Federal Government and the other two tiers of government have shared N647. 390 billion as federation revenue and proceeds of the Value Added Tax, VAT for the month of February
The funds were shared by the Federation Accounts Allocation Committee (FAAC) at the end of its meeting in Abuja, yesterday. President Muhammadu Buhari and Cross Section of Ministers during the Federal Executive Council (FEC) Meeting held at the Council Chambers State House Abuja.
This followed days of disagreement over receipts into the Federation Account, which the state Commissioners of Finance initially rejected and insisted that the Nigerian National Petroleum Corporation (NNPC) must pay more oil revenue into the account.
The Minister of Finance, Mrs. Kemi Adeosun, who spoke to journalists at the end of the Committee’s meeting, said the N647.39 billion distributed to the three tiers of government was N11.836 billion higher than the N635.554 billion shared in the previous month.
Statutory revenue accounted for N557.943 billion of the total revenue distributed on Wednesday while Value Added Tax accounted for the balance of N89.447 billion.
On the states’ dispute with the revenue paid by the NNPC into the Federation Account, the Minister said the FAAC would reconcile the revenue figures with the top management of the Corporation led by the Group Managing Director, Mr. Maikanti Baru, within the week. She said:
“The NNPC is a major channel of our mineral revenue and by that fact there would be issues from time to time.
Some issues have been raised by the states on the revenue paid into the Federation Account by NNPC. Some of the issues that were raised have actually been cleared, but of course, there are new issues that arise.
I think that is part of reconciliation, accountability and transparency. We did that overnight, speaking to the governors and we took a decision to go ahead and still of the view that there are issues and I’m sure within the next 48 hours I would meet with NNPC GMD or his representatives.
“I think this is a healthy process. Questions must be asked, that is what accountability is all about. We would get to the bottom of the issue so that we can move forward. I think it’s a healthy development. I’m confident we would resolve all the outstanding issues.”
Details of the revenue distribution showed that the Federal Government received N257.927 billion of the net statutory revenue as against the N249.366 billion received in the previous month, while the state and local governments’ share of the statutory revenue was N130.824 billion and N100.86 billion, respectively.
The states and local governments had last month got N126.482 billion and N97.512 billion, respectively. The nine oil producing states received 13 percent derivation amounting to N57.356 billion.
The 36 states received VAT of N42.935 billion compared with N46.39 billion received in the previous month, while the Federal and Local Governments received VAT of N12.88 billion and N30.054 billion, respectively.