The Federation Account Allocation Committee (FAAC) yesterday distributed N626.82 billion to the three tiers of government for the month of March, 2018 from the revenue accruals into the Federation Account.
The sharing of the fund was delayed due to disagreements by the tiers of government over alleged under-remittance of about N12 billion into the Federation Account by the Nigerian National Petroleum Corporation’s (NNPC’s) alleged
The FAAC meeting, which should have ended Tuesday was reconvened yesterday to share the available N626.82 billion.
Addressing journalists after the FAAC’s meeting, the Accountant General of the Federation (AGF), Mallam Ahmed Idris, disclosed that the gross statutory revenue for the month stood at N480.59 billion, representing a drop of about N77.34 billion when compared with the revenue of N557.94 billion in February.
He noted that crude oil export sales dropped by 13 per cent in March as against the 5.42 million barrels exported in the previous month, attributing the drop in volume to production shutdown at various terminals for repairs and maintenance.
However, he reported that there was increase in oil royalty for the month, while collections from companies’ income tax and import duty increased marginally.
Idris explained that out of the sum shared by the tiers of government, the Federal Government got N263.1 billion compared to the N167.61 billion distributed to the 36 state governments and the Federal Capital Territory. He said that the local governments got N126.29 billion.
According to him, the sum of N54.5 billion was shared to the oil producing states based on the 13 per cent derivation principle.
Reacting to media enquiry as to when the NNPC would remit the underpaid revenue to the Federation Account, the AGF confirmed that the reconciliation was going on.
He explained: “So, reconciliation is part of the order and in that particular instance, reconciliation that started last month continued this month and there is nothing new.
“We couldn’t meet yesterday (Wednesday) because we felt certain milestones had to be reached and on getting to those milestones, we sat today and considered the figures for distribution”, Idris added.
Idris, also confirmed that current savings in the Excess Crude Account (ECA) had dropped to an all-time low of $1.83 billion following the withdrawal of $496 million by the government last month. The balance in the Excess Crude Account as at last month was $2.3 billion.
President Muhammadu Buhari had approved the withdrawal of $496m from the ECA for the payment for Tucano aircraft required by the security forces to fight insurgency war in the country.