The Federal Government, State Governments, and Local Government Councils have shared a total of N345.095 billion as Federal allocation for the month of February, 2016.
A communiqué issued by the Federation Accounts Allocation Committee (FAAC) and signed by the Accountant General of the Federation Ahmed Idris indicated that the Gross Revenue of N270.499 billion received for the month of February is lower than the N290.961 billion received the previous month by N20.462 billion.
The communique further indicated that Oil Production increased slightly between December, 2015 and January, 2016 despite explosions at Escravos Terminal, Force Majeure declared at Brass Terminal, Shut-in and Shut-down of pipelines at other Terminals for repairs and maintenance.
There was also revenue loss of $45.90million as a result of drop in average price of Crude Oil from $39.04 in December, 2015 to $29.02 in January, 2016. Also, a substantial drop in income was recorded from Oil and Gas Royalty, Companies Income Tax and import Duty.
Consequently, the distributable Statutory Revenue for the month is N270.499billion. The sum of N6.330 billion was refunded by NNPC to FGN. There is exchange gain of N3.485 billion which was included in the amount for distribution. The value added tax VAT realized N64.781 billion was also included for distribution.
Based on the foregoing, the total revenue distributable for the current month inclusive of VAT is N345. 095 billion.
The details of the Statutory revenue distributed for the month of February is as follows: Federal Government received N127.200 billion (52.68%); States received N64. 518 billion (26.72%); Local Government Councils received N49.740 billion (20.60%); while the Oil Producing States received N22.780 billion as 13% derivation revenue.
Furthermore, for the month of February, 2016, the gross revenue available from the Value Added Tax (VAT) was N64.781 billion as against N69.719 billion distributed in the preceding month, resulting in a decrease of N4.938 billion.
The breakdown of the Value Added Tax (VAT) distribution for the month is as follows: Federal Government received N9.329 billion (15%); States secured N31.095 billion (50%) while the Local Government Councils got N21.767 billion (35%).
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