State govts go broke as FAAC February allocation shrink to N581bn

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The Federation Account Allocation Committee on Monday shared the sum of N581.56bn to the three tiers of government for the month of February.

The February allocation represents a decline of N65.79bn when compared to the N647.35bn which was shared in the month of January. The distribution was made at the end of the rescheduled meeting which was held at the headquarters of the Ministry of Finance.

The meeting had last week Thursday ended in a deadlock following disagreements about how much was presented for distribution to the three tiers of government.

The N581.56bn was made up of statutory revenue of N466.05bn, Value Added Tax of N99.55bn’ exchange gain N757m, and revenue from forex equalisation account N15.19bn.

A breakdown of the communique issued at the end of the meeting showed that from the N581.56bn, the Federal Government received N236.11bn, State Governments got N159.01bn, while the Local Government Councils received N119.3bn. Similarly, the oil producing states received N45.31bn based on the 13 per cent derivation principle while revenue generating agencies got N21.82bn as cost of revenue collection.

The communique stated that during the period, Petroleum Profit Tax, Companies Income Tax, import and excise duties, oil and gas royalties and Value Added Tax all recorded substantial decreases. The balance in the Excess Crude Account was put at $ 72.22m.

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