Federal, States, LGs Get N3,84trn FAAC In Six Months – NEITI

NEITI, NNPC, Federation Account

 

The Federal, States and Local governments shared N3.84trillion allocations between January and June 2019.

This is according to the latest edition of Nigeria Extractive Industries Transparency Initiative (NEITI) Quarterly Review.

In a statement by NEITI’s Director, Communications and Advocacy, Orji Orji, that the Federal Government received N1.599 trillion, the 36 states got N1.335 trillion while the 774 local governments shared N792 billion during the period under review.

The FAAC disbursement of N3.84 trillion for the first half of 2019 was slightly lower than the N3.94 trillion disbursed during the same period in 2018  but higher than the N2.78 trillion disbursed in the first half of 2017.

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On a quarter on quarter basis, the second quarter of 2019 was the lowest since the fourth quarter of 2017.

“The quarterly FAAC disbursements from Q1 2013 to Q2 2019 reveal that the total disbursement of N1.913 trillion in the second quarter of 2019 was the lowest since the fourth quarter of 2017 when N1.700 trillion was disbursed. The figure shows that three quarters of 2018 had total disbursements above N2 trillion.”

Meanwhile, Delta State maintained the lead among states of the Federation with the highest share of FAAC allocation during the period under review with N108.7billion, while Osun received the lowest amount of N10.09billion.

The Report which revealed an interesting pattern of wide disparities in disbursements received by states also noted that the disbursements by a majority of the states (27 states) in the first half of 2019 were lower than disbursements in the first half of 2018. Thus, 75% of the states received higher revenue in the first half of 2018 than the first half of 2019.

FG, States And LGs Share N610.368bn In February

FG, States And LGs Share N610.368bn In February

 

The Federation Accounts Allocation Committee (FAAC) has shared a total of N610.368 billion to the three tiers of government.

According to a statement on Wednesday by the Director of Information at the Ministry of Finance, Hassan Dodo, the money was the federal revenue generated in the month of January but shared in February.

The statement quoted the Accountant General of the Federation, Ahmed Idris, as making the disclosure while briefing reporters at the end of the FAAC meeting held in Abuja.

Mr Idris said the Minister of Finance, Zainab Ahmed, was to approve additional N50 billion from the Foreign Exchange Equalisation Account.

He added that the money would be distributed accordingly while the Excess Crude Account (ECA) currently stands at $249 billion.

A communique issued by FAAC revealed that from the N610.368 billion, the Federal Government received N252.412 billion, the states received N170.541billion, while the local governments received N127.923 billion.

The oil-producing states received N41.992 billion as 13 per cent derivation revenue while the revenue generating agencies received N17.5 billion as the cost of revenue collection.

The gross revenue of N505.246 billion was received in the month of January, which is N42.216 billion lower than the N547.462 billion received in the previous month.

The gross revenue from Value Added Tax (VAT) was N104.468 billion as against N100.760 billion distributed in the previous month, resulting in an increase of N3.708 billion.

From the total gross revenue from VAT, the Federal Government received N15.044 billion, the states received N50.145 billion, and the local governments received N35.102 billion while the revenue generating agencies got N1.178 billion.

The communique stated that for the month of January 2019, the federation crude oil sales increased by 2.4 million barrels, resulting in increased federation revenue by $149.94 million despite a drop in the price of crude oil from $81.06 to $75.00 per barrel.

In the month under review, oil royalty, import, and excise duties increased substantially while Companies Income Tax (CIT) and Petroleum Profit Tax (PPT) decreased marginally.

FG, States, LGs Share N648.71bn For September

FG, States, LGs Share N648.71bn For September
Minister of Finance, Mrs Zainab Ahmed (file)

 

The Federal, state, and local governments have shared a total of N648.71 billion for the month of September.

Minister of Finance, Mrs Zainab Ahmed, announced this on Friday at the end of the monthly Federation Account Allocation Committee (FAAC) meeting in Abuja.

According to her, the gross statutory revenue for the month is N569.3 billion naira which is N57.9 billion less than the N627.14 billion shared in August.

The minister, who presided over the FAAC meeting, stressed the need for the three tiers of government to save.

She also challenged members of the committee to maintain transparency and instil a saving culture for the rainy day in various states.

The next FAAC meeting is expected to hold during the National Council of Finance and Economic Development Conference in Kaduna, scheduled for Wednesday, November 28.

The report of the Committee on the Excess Crude Account is expected to be presented at the meeting.

FG Disburses N668.898b For May Despite FAAC Deadlock

FG Disburses N668.898b For May Despite FAAC Deadlock
Minister of Finance, Kemi Adeosun (file)

 

The Federal Government has disbursed N668.898 billion to the three tiers of government for the month of May, despite the impasse in the Federation Accounts Allocation Committee (FAAC).

Director of Information at the Federal Ministry of Finance, Hassan Dodo, revealed this in a statement on Friday in Abuja.

He explained that the sharing of revenues for May, which was meant to be distributed in June, was put on hold because of the disagreement on remittances by the revenue generating agencies, especially the Nigerian National Petroleum Corporation (NNPC).

Dodo added that the money was distributed due to the urgent need to cushion the undue hardships being experienced by workers nationwide.

He, however, said the government was intensifying efforts to address the unsatisfactory remittances.

According to the director, the N668.898 billion is made up of the statutory distributable sum of N575.475 billion and N93.423 billion from the Value Added Tax (VAT).

He said, “The total revenue realised for the month, was shared in line with the extant formula as follows: Federal Government – N282.223 billion; State Governments – N181.167 billion; and Local Government Councils – N136.490 billion.

“The Oil Producing States received N53.071 billion as 13 per cent derivation. The sum of N15.947 billion was paid to the revenue generating agencies as costs of collections.”

Dodo revealed that the statutory revenue of N575.475 billion received for the month of May was lower than the N613.057 billion received for April by a total of N37.582 billion.

He noted that from the total statutory revenue of N575.475 billion, the Federal Government was given N268.770 billion, the states – N136.324 billion, Local Government Areas – N105.100 billion, the oil-producing states – N53.071 billion, while the revenue generating agencies received N12.210 billion as costs of collections.

“For the month of May 2018, the total revenue of N93.423 billion from the Value Added Tax (VAT) was N5.458 billion higher than the N87.965 billion distributed in April 2018.

“From the total of N93.423 billion, the Federal Government received N13.453 billion; the states received N44.843 billion; the Local Government Councils received N31.390 billion, while N3.737 billion was received by the revenue collecting agencies,” the director said.

The monthly FAAC meeting held in June had ended in a stalemate as a result of the disagreement on remittances by the revenue generating agencies.

The controversy continued as the Nigeria Governors’ Forum (NGF) faulted the remittances from the NNPC, saying they were inaccurate.

Briefing reporters after the governors met on Wednesday in Abuja, NGF Chairman and Zamfara State Governor, Abdul’Aziz Yari, queried the amount the NNPC claimed to have used for the payment of petroleum subsidies.

He said the governors resolved that until the agency corrects the discrepancies in the amount remitted to the Federation Account, the states would not share the money.

FAAC Stalemate Continues As Governors Label NNPC Remittance As ‘Unacceptable’

 

The controversy that trailed the impasse in the Federation Accounts Allocation Committee (FAAC) is far from ending.

The matter took a new dimension on Wednesday as the Nigeria Governors’ Forum (NGF) insisted that the remittances from the Nigerian National Petroleum Corporation (NNPC) were inaccurate.

Chairman of the Forum and Zamfara State Governor, Abdul’Aziz Yari, briefed reporters at the end of the meeting which held in Abuja, the nation’s capital.

He said the governors resolved that until the NNPC corrects the discrepancies in the amount remitted to the Federation Account, the states would not share the money.

“We have seen irregularities in numbers and discrepancies in numbers, saying that ‘you are taking subsidy – a subsidy of N88billion’; but you clearly stated that N31billion is for the month of June and N57billion is for payment of 2007 or 2017 subsidy, which is not acceptable,” Governor Yari noted.

He argued that the NNPC cannot deduct funds from the Federation Account at its discretion unless it gets the approval of the President or the National Executive Council (NEC).

The NGF chairman, however, pointed out that such was not the case in this instance and even if it was, the governors have a right to disagree or agree with such approval.

They also queried the amount that the NNPC claimed to have used for the payment of petroleum subsidies.

NNPC had remitted N147billion into the Federation Account in May, but the governors faulted the amount and asked the agency to return the funds it deducted.

They described the amount remitted as a far cry from expected revenue, noting that the said amount does not reflect the current economic realities and prices of oil in the international market.

Governors in attendance include Mohammed Abubakar (Bauchi), Godwin Obaseki (Edo), Abubakar Bagudu (Kebbi), Aminu Masari (Katsina), and Willie Obiano (Anambra), among others.

Reps To Investigate NNPC’s Financial Records

The House of Representatives has resolved to investigate the financial records and actual production capacity of the Nigerian National Petroleum Corporation (NNPC) from January 2018 to date.

This investigation is aimed at ascertaining the volume of sales of crude oil of the NNPC.

The House also resolved to investigate the yearly production output to determine the impropriety or otherwise of the claim of 2 million barrels of crude oil per day by the corporation.

The motion for investigation was moved by Representative Ossai Nicholas (Delta PDP) citing NNPC’s current under-remittances to Federation Account.

He pointed out that this was the reason why the Federation Accounts Allocation Committee (FAAC) meeting for the month of June, did not hold.

There is an “urgent need” to investigate the “under-remittances” of the Nigerian National Petroleum Corporation (NNPC), Ossai said.

READ ALSO: FAAC Meeting Ends In Deadlock

Ossai while moving the motion, during plenary on Tuesday, added that the N100 billion ($277 million, €236 million) shortfall is not connected to the oil price, which has been high in recent months and is “likely as a result of some individuals not doing what they are supposed to.”

“The people who have worked have not received their salaries,” Ossai said, adding that the NNPC has “always given one reason or the other that are not cogent”.

The motion from the House of Representatives comes after Finance Minister Kemi Adeosun said on June 28 that remittances from the NNPC were “unacceptable”.

Adeosun said that oil proceeds have become an issue and that the government was investigating the NNPC’s claims that the funds were lower than expected because of the deduction of fuel subsidies.

Buhari Meets With Three APC Governors Over FAAC Deadlock

Eid-El-Fitr: Forgive And Embrace Peace, Buhari Tells Nigerians
File photo: President Muhammadu Buhari

 

President Muhammadu Buhari is currently meeting with three governors of the All Progressives Congress (APC) at the Presidential Villa in Abuja.

The Governors, Abdul-Aziz Yari Abubakar of Zamfara, Badaru Abubakar of Jigawa and Abubakar Bagudu of Kebbi states were sighted entering the president’s office on Thursday.

Addressing journalists after the meeting, the governors noted that their visit had nothing to do with the crisis rocking the party.

Instead, they insisted that they were at the Villa to discuss issues relating to finance as they concern the recently stalled Federation Accounts Allocation Committee (FAAC) meeting.

The FAAC meeting for the month of June had on Wednesday last in a deadlock reportedly over disagreements about the amount accrued to the federation in May and what was due to the states of the federation.

Although no reason was given for the suspension of the meeting, the Chairman of FAAC’s Forum of Finance Commissioners, Mr Mahmood Yunusa, told journalists afterwards that they (the commissioners) were going back to confer with the state governors.

The three governors, who discussed the issues that led to the deadlock with President Buhari and Minister of Finance Kemi Adeosun on Thursday, said they were hopeful that the President will take decisive steps to resolve the deadlock.

Concerning the crisis in the APC, the Governor of Zamfara State who spoke on behalf of the group said they were confident that the leadership would work to resolve all issues.

The meeting comes barely 24 hours after a new faction of the APC called the Reformed-APC (R-APC), emerged in Abuja.

The faction which has Buba Galadima as its Chairman is made up of aggrieved members of the APC, mostly in the National Assembly.

Briefing journalists after their meeting at the Sheraton Hotels in Abuja on Wednesday, Galadima said the new faction was formed due to the failure of the APC.

They described APC as “severely underperforming and unable to meet its potentials for good governance.”

Hours after the group was announced in Abuja, the APC National Publicity Secretary, Mr Bolaji Abdullahi, said the party would react to the development as soon as they have enough details.

“We have report of a group of people who have purportedly described themselves as a faction of our party. We will be able to give our reaction as soon as we get the full details and have the opportunity to review it,” Abdullahi said in a short statement.


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FAAC Meeting Ends In Deadlock

Party To React Soon As Oshiomhole Vows To ‘Sustain Trust’


Meanwhile, the APC National Chairman Adams Oshiomhole has promised to sustain the trust of members and leaders of the party after the APC elective national convention.

He made the pledge while receiving the report of the appeal committee set up by the party to review complaints and petitions arising from the convention.

FAAC Meeting Ends In Deadlock

FG Issues New Guideline For Collation Of Surplus Fund
Minister of Finance, Kemi Adeosun

 

The monthly meeting of the Federation Accounts Allocation Committee, FAAC, ended on Wednesday in a deadlock.

No reason was given for the suspension of the meeting.

The Chairman of FAAC’s Forum of Finance Commissioners, Mr Mahmood Yunusa, said they were going back to confer with the state governors.

On his part, the Director of Press at the Ministry of Finance, Mr Hassan Dodo, said the meeting would reconvene before the end of the week.

This is not the first time the FAAC meeting would end in a deadlock.

In March, disagreement over the revenue figures of the Nigerian National Petroleum Corporation (NNPC) caused the meeting to end in a deadlock with representatives of states accusing the corporation of failing to remit the full revenue accrued in February.

FAAC Allocates N647bn To FG, States And LGs

FAAC Allocates N647bn To FG, States, LGs
File photo

 

The Federation Accounts Allocation Committee (FAAC) has allocated the sum of N647billion to the Federal, state and local governments for the month of February.

The Minister of Finance, Mrs Kemi Adeosun, revealed this on Wednesday in Abuja after a reconvened meeting of the FAAC.

An earlier meeting of the committee had ended in a deadlock on Tuesday triggered by the alleged non-remittance of more than N37billion into the Federation Account.

Mrs, Adeosun, however, promised to address the concerns raised by members of the committee.

She explained further that while noting that the amount distributed represents an N11billion increase compared to what was distributed in January.

Out of the amount, the Federal Government got N270.8bn, states received N173.75bn and the 774 local government councils were allocated a total of N130.9bn.

FAAC also allocated the sum of N57.35bn to the oil producing states based on the 13 per cent derivation principle while N14.55bn was returned to the revenue generating agencies as the cost of revenue collection.