Nigeria's Revenue Allocation Committee resolves disbursement disagreements

Nigeria's Revenue Allocation Committee resolves disbursement disagreements
Hauwa Noroh Ali, Abuja

The disagreement over extra-budgetary allocation and controversy over fuel subsidy deduction by the Nigerian National Petroleum Company (NNPC) and the Petroleum Products Pricing Regulatory Agency (PPPRA) have been resolved, leading to the disbursement of 611.453 billion Naira among the three tiers of government for the month of September, compared to the 607.023 billion Naira shared in August.

Dr Yerima Ngama, Minister of State for Finance, stated this while addressing newsmen in Abuja after the Federation Accounts Allocation Committee (FAAC) meeting, which had earlier been postponed indefinitely, pending a resolution of all issues in contention.

The Minister of State said the Federal Government received 260.187 billion Naira, states 131.970 billion Naira and local governments 101.744 billion Naira.

Disbursement format

Giving a breaking down of the distribution, he said that the statutory allocation distributed was 553.144 billion Naira while the Value Added Tax (VAT) distributed was 58.309 billion Naira.

Of the VAT, the Federal Government got 15 percent amounting to  8.746 billion Naira, states got 50 percent amounting to 29.155 billion Naira, while local governments got 35 percent,  which came to  20.408 billion Naira.

Dr. Ngama added that the oil producing states received 13 percent derivation totalling 6.249 billion Naira.

"The total revenue distributable for the current month including Value Added Tax is N611.453 billion and this showed an increase of N4.431 billion or 0.725 per cent compared to the amount distributed in August,'' he said.

The finance minister said that 924.691 billion was the total revenue generated for the month of September, an amount lower than 969.691 billion Naira received in the month of August.

He noted that the revenue accrued from the mineral and non -mineral revenue, adding that it was far in excess of 568 billion Naira budgeted for distribution in this year's appropriation.

“257 billion Naira had been transferred to the excess crude account, and due to the excess revenue, there has been no need for augmentation for the month of September from the excess crude account."

NNPC debts

On NNPC’s  debts to revenue accounts, he said the corporation had commenced payments, which would be spread over 32 months.

"NNPC has started repaying. What it is paying is a portion that will go to the states and local governments, which is 7.6 billion Naira monthly. I am assuring you that NNPC has paid for the months of September and October," he said.

He also announced that another Federation Accounts Allocation Committee meeting would be held on November 15, to share the revenue for the month of October.

Dr. Ngama noted that the delay in the September FAAC meeting had affected the non-payment of salaries but gave assurance that various accounts of government would be credited with immediate effect.

"By tomorrow or latest Friday, all staff of federal and state governments will receive their salaries," he said.

Commenting on the meeting, Mr Ezeh Echesi, the Chairman of the Commissioners Forum, said that all pending issues had been resolved.

He however, clarified that the issue of Sovereign Wealth Fund had nothing to do with the delay in holding the FAAC meeting.

Hajia Sani