N843.5bn Shared Among the Three Tiers of Government in May

On Tuesday, June 17, the total distributable revenue of about N843.57bn was shared by the Federation Accounts Allocation Committee (FAAC) among the Federal Government, State Governments and Local Governments for the month of May.

This compared the allocation of previous months was a big increase, as monthly revenue collections  had been decreasing as a result of illegal bunkering activities, pipeline vandalization, among others in recent times, reducing monthly allocations to an average of about N550bn.

Compared to that of the previous month which stood at about N584.15bn, the gross revenue for the month under review was about N259.88bn higher at N844.03bn.

The Accountant General of the Federation (AGF), Mr Jonah Otunla, who addressed journalist after the monthly meeting of the committee in Abuja, said that receipt for the month was boosted by a bulk payment of $1.2bn by Nigerian Liquified Natural Gas (NLNG) which made a profound impact on revenue collections for May.

He also added that the upward review of estimates by the Shell Petroleum Development Company of Nigeria Limited (SPDC) and other companies also helped in enhancing revenue for the month under review.

Mr Otunla said total mineral and non-mineral revenue stood at about N844.03bn while value added tax receipts amounted to about N65.41bn for the month.

An additional sum of about N159.68bn was shared from the excess non-mineral revenue though about N683.89bn was the total distributable revenue.

A breakdown of the distribution showed the federal government received about N273.66bn while the states got about N138.80bn as well as the local governments which shared about N107.01bn.

The oil and gas producing states were also given about N54.29bn under the derivation principle.

For the VAT, the federal, states and local governments received the sum of about N10.14bn, N33.81bn and N23.67BN respectively.