Oil-producing states get N46.07bn as derivation fund in January

This picture taken on June 10, 2016 shows an advertising board concerning the oil pipeline vandalization in the City of Warri in Delta State. Nigeria is experiencing the uprising of a new militant group called the Niger Delta Avengers who are attacking oil pipelines and threatening to cripple the Nigerian economy by halting oil production. / AFP / STEFAN HEUNIS (Photo credit should read STEFAN HEUNIS/AFP/Getty Images)

Lagos — Nigeria’s eight oil-producing states received N46.07 billion as 13 per cent derivation revenue from the Federation Account Allocation Committee, FAAC, in January.

The amount is from the N647.35 billion shared by the Federal, states and local governments during the month, comprising Statutory Revenue; Value Added Tax, VAT; Exchange Gain; Non-Oil Revenue and Excess Bank Charges recovered.

“The oil producing states received N46.07 billion as 13 per cent derivation revenue and the Revenue Collecting Agencies received N16.56 billion as cost of collection,” said Mr. Mahmoud Isa-Dutse, Permanent Secretary, Federal Ministry of Finance, Budget and National Planning, as he gave details of revenue allocation during the month under review.

The gross statutory revenue for the month of January 2020 was N525.25 billion, lower than the N600.31 billion received in the previous month by N75.06 billion, Isa-Dutse said.

“For the month of January 2020, the gross revenue available from the Value Added Tax (VAT) was N104.75 billion as against N114.80 billion in the previous month, resulting in a decrease of N10.04 billion.

“Exchange Gain yielded a total revenue of N1.04 billion, while the Non-Oil revenue was N16.29 billion,” he added.

He stated that from the N647. 35 billion shared in January, the federal government got N267.38 billion, the state governments, N176.92 billion, and the local government councils, N132.94 billion.

Oil falls, OPEC backs deeper supply cuts

According to a communique released by FAAC, a breakdown of the distribution showed that from the gross statutory revenue of N525.25 billion, the federal government received N243.70 billion, the state governments received N123.61 billion and the local government councils received N95.29 billion.

“From the Value Added Tax (VAT) revenue of N104.75, the federal government received N14.61 billion and the state governments received N48.71 billion.

“The local government councils received N34.09 billion and the revenue generating agencies received N7.33 billion as cost of revenue collection.

“From the Exchange Gain revenue of N1.044 billion, the federal government received N0.48 billion, the state governments received N0.24 billion, the local government councils got N 0.19 billion and the oil producing states got N0.12 billion as 13 per cent derivation revenue.

“From the Non-Oil revenue of N16.29 billion, the federal government got N8.58 billion, the State Governments got N4.35 billion, the local government councils got N3.35 billion, ” it said.

This site uses Akismet to reduce spam. Learn how your comment data is processed.