FAAC crisis: Buhari unveils new template on revenue remittance

Nigeria's Finance Minister Kemi Adeosun speaks at a news conference in Lagos, Nigeria, April 9, 2016. REUTERS/Akintunde Akinleye

The lingering crisis between the Nigerian National Petroleum Corporation ( NNPC) and Federation Account Allocation Committee ( FAAC) over revenue remittances may have been resolved as president Buhari was ordered a new remittance template.

The Minister of finance, Mrs. Kemi Adeosun, said yesterday at the monthly Federation Accounts Allocation Committee (FAAC) meeting that the new approach would put end to recurring stand-offs between FAAC and NNPC over revenue remittance.

“I have an update on the intervention of Mr President on the FAAC stand-off . The last FAAC as you know was inconclusive and the accounts proposed were not accepted by FAAC. Mr President asked to be briefed on the issue and based on that written briefing, Mr President asked for further information which was provided by both ourselves and NNPC. Last week, on Friday he held a meeting between myself, the Chief of Staff, the Minister of state for petroleum and the NNPC team”.

“Mr President gave directives. The one which relates to FAAC was the need to revise the template. It was accepted that the reporting template between NNPC and the Federation account was not fit for purpose and not providing the right level of assurance around the figures. And so Mr President has directed that a new template be generated jointly between the ministry of finance, the office of the Accountant-General, the NNPC and the RMAFC” she said.

“Mr President has directed that prior to FAAC, there must be a pre-meeting between the Ministry of Finance and the NNPC to go through the figures that are being presented and to agree on those figures before they are brought to FAAC”, she said .

Meanwhile, N821.863 billion was shared as revenue for the month of June, 2018, among the federal, states and local government areas.

In a communiqué read by the minister, the gross statutory earnings received for the month was N694.672 billion , higher than N575.475 billion received in the previous month by N119.197billion.

The shared amount comprised the month’s statutory distributable revenue of N694.672 billion, Value Added Tax of N85.342billion and the excess gain from the forex equalization account of N41.848, making N821.863 billion.

Accordingly, from Net Statutory Allocation, the Federal Government received N283.540 billion representing (52.68%); States received N143.815 billion (26.72%); Local Government Councils received N110.876 billion representing (20.60%); while the Oil Producing States received N37.408 billion as 13% derivation revenue. Meanwhile, FIRS, Nigeria Custom Service and DPR received the sum of N22.446 billion as their cost of collection and FIRS refund. There was also N100 Billion transferred to the Excess Crude Account.

Furthermore, from the Revenue available from the Net Value Added Tax (VAT), Federal Government received N12.289 billion (15%); States received N40.965 billion (50%) while the Local Government Councils received N28.675 billion (35%).