FAAC: Federation revenue declines by N107.1bn in July

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The Federal, States and Local Government shared N714.8 billion as revenue generated in July which shows a decline of N107.1 billion when compared to what was generated in June.

The Minister of Finance, Mrs Kemi Adeosun while briefing journalists in Abuja on the outcome of the monthly Federation Account Allocation Committee (FAAC) meeting, highlighted several factors that impacted negatively on the month’s income.

“Crude oil exports sales volume was 3.74 million barrels showing an increase of 0.17 million barrels when compared with the previous month sales or 3.57 million barrels.

“Despite the improved revenue, production was negatively affected in the period by shut-ins and shut-down at various terminals for repairs and maintenance of ageing facilities,” the minister explained.

“The Value Added Tax (VAT), import duty, Companies Income Tax (CIT) and Oil Royalty decreased while Petroleum Profit Tax recorded an increase,” she said.

Mrs. Adeosun  giving a breakdown of the revenue generated, said that N376.14 billion was generated as mineral revenue while N221.8 billion came from non-mineral revenue.

She said that federal government received N269.8 billion, states, N136.85 billion and the local governments, N105.5 billion.

The Minister said that N44.96 billion was also shared among the oil producing states, representing 13 per cent of the oil revenue generated in the month of January.

Mrs. Adeosun said the equivalent of N25 million was transferred into the Excess Crude Account (ECA), saying that the balance in the ECA account was 2.31 billion dollars.

The Minister also gave an update on the review of the revenue reporting template between the NNPC and the FAAC, as directed by President Muhammadu Buhari.

She announced that the reporting template would be ready before the next FAAC meeting, scheduled for later in September.

President Muhammadu Buhari had ordered the review ofthe revenue reporting template between the NNPC and the FAAC as a lasting solution for the frequent disagreements between the two parties over revenue collections.

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