Amidst FAAC controversy, finance ministry announces sharing of N669bn

Minister of Finance, Kemi Adeosun (Photo Credit: adelove.com)
Minister of Finance, Kemi Adeosun (Photo Credit: adelove.com)

The Federation Account Allocation Committee (FAAC) has released about N668.9 billion to the three tiers of government.

The committee said the release is for salaries to cushion the impact of the stalemate in the June 2018 revenue sharing meeting.

The FAAC meeting last June ended in a deadlock without members agreeing to share the N147 billion revenue provided by the Nigerian National Petroleum Corporation (NNPC) for sharing.

Since then, two other attempts to resolve the disagreement have failed, resulting in the meeting being postponed indefinitely last week

Many civil servants across the 36 states of the federation and the Federal Capital Territory, Abuja have had to go without their June salary.

But, to enable the various the governments meet their obligations to their workers, FAAC resolved to release May 2018 revenues meant for distribution in June for sharing.

A statement sent to PREMIUM TIMES on Friday by the spokesperson of the Federal Ministry of Finance, Hassan Dodo, gave details of the disbursement.

“The urgent need to cushion the undue hardships experienced by workers nationwide has made it necessary to distribute the May figures totalling N668.898 billion to the three tiers of government, while efforts are being intensified to address the unsatisfactory remittances,” Mr Dodo said.

He said the N668.9 billion is made up of statutory distributable allocation of N575.5 billion and N93.4 billion from the Value Added Tax (VAT).

Mr Dodo said the federal government got about N282.2 billion state governments got N181.7 billion, while local government councils received N136.5billion.

The oil producing states received N53 billion as 13 per cent derivation, with about N15.947 billion paid to the revenue generating agencies as costs of collections.

The statutory revenue of N575.5 billion received for May was lower by N37.582 billion than the N613 billion in April 2018.

For May 2018, about N93.4 billion realised from the Value Added Tax (VAT) was about N5.5 billion higher than the N87.965 billion distributed in April 2018.

From the VAT. the federal government received N13.453 billion, states got N44.843 billion, local government councils received N31.39 billion, while N3.737 billion was received by the revenue collecting agencies.


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