By Victor Ernest
The Federation Account Allocation Committee (FAAC) on Tuesday shared N429.1 billion, about N36 billion less than what the three tiers of government shared as revenue for January.
The Minister of Finance, Kemi Adeosun, told newsmen in Abuja that the N429.1 billion was distributed under four distributable sub-heads.
According to the minister, the distributable revenue for the month was N258.7 billion.
She said the sum of N6.33 billion was refunded by NNPC, adding that there was a proposed distribution of N60.89 billion from the excess Petroleum Profit Tax.
The minister explained that the exchange gains of N40.32 billion was proposed for distribution, therefore, the total revenue distributable for the month of February including VAT of N69.2 billion was N429.1 billion.
Shortfall in revenue
She attributed the shortfall in revenue generation for the month to the continued sabotage of oil pipelines in the Niger-Delta region.
”Production diminished during the period due largely to leakages in the pipelines arising from sabotage. Also the Force Majeure declared at Forcados and Brass Terminals lingers,” she explained.
Adeosun noted that there were drops in revenues from Petroleum Profit Tax, Companies Income Tax, Import and Excise duties and oil royalty.
The minister said after deducting cost of collections to the revenue generating agencies, the Federal Government got N117.58 billion, states N59.63 billion and local governments N45.98 billion.
She added that N23.1 billion was given to the oil-producing states under the 13 percent derivation principle, leaving the Federal Government with a balance of 2.45 billion dollars in the excess crude account.
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