FG distributes N668.89bn as May FAAC allocation to three tiers

After deadlocks on remittance to the consolidated revenue fund stalled disbursement of allocations for May 2018, the federal government has released N668.898 billion to be shared by the three tiers for the month.

The disclosure which was contained in a statement signed by the Director of Information, Ministry of Finance, Hassan Dodo, attributed the President Muhammadu Buhari-led government decision to effort to cushion the undue hardships being experienced by workers nationwide.

 

Allocations for May which ought to be distributed in June, was put on hold due  to disagreement on remittances by the Revenue Generating Agencies, especially the NNPC, as state representatives in the allocation distribution committee protested under-remittance.

Apparently after talks and effort to pay workers salary, the federal government said it has distributed the May figures totalling N668.898 billion to the three tiers of Government, while efforts are being intensified to address the unsatisfactory remittances.

The N668.898billion is made up of statutory distributable sum of N575.475 billion and N 93.423 billion from the Value Added Tax (VAT).

Breakdown of how the revenue realised for May was shared showed that while Federal Government got N282.223 billion; State Governments received N181.167 billion; and Local Government Councils was given N136.490 billion.

Other distribution showed The Oil Producing States received N53.071 billion as 13 per cent derivation while the sum of N15.947 billion was paid to the revenue generating agencies as costs of collections.

“The statutory revenue of N575.475 billion received for the month of May 2018 was lower than the N613.057 billion received for April 2018 by a total of N37.582 billion,” he pointed out.

“From the total statutory revenue of N575.475 billion, the Federal Government was given N268.770 billion; the States – N136.324 billion; Local Government Areas – N105.100 billion; the Oil Producing States – N53.071 billion, and the revenue generating agencies received N12.210 billion as costs of collections.

“For the month of May 2018, the total revenue of N93.423 billion from the Value Added Tax (VAT) was N5.458 billion higher than the N87.965 billion distributed in April 2018. From the total of N93.423 billion, the Federal Government received N13.453 billion; the States received N44.843 billion; the Local Government Councils received N31.390 billion, while N3.737 billion was received by the revenue collecting agencies.”