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FG incurs N87bn allocation deficit

*As FG, States, LGAs share N199bn

By Henry Umoru

ABUJA-THE Federal Government disclosed yesterday that it recorded a total of N87 billion deficit in the statutory fund that was to accrue to the government, states and local governments, just as the three tiers of government shared a total of N199.132 billion in August.

Addressing newsmen yesterday in Abuja at the end of the meeting of the Federation Accounts Allocation Committee (FAAC), Minister of State for Finance, Mr Remi Babalola said the Federal Government got N96.914 billion while states got N49.156 billion and the local governments N37.897 billion, adding that the oil-producing states gathered N15.165 billion.

According to him, out of the N44.72 Value Added Tax (VAT) collected for the period under review, the Federal Government got N5.823 billion, states, N19.411 billion while local governments received N23.588 billion.

Babalola who noted that the deficit was as a result of the declining oil production in August because of the attack on Chevron’s Okan Valve in July this year resulted in production loss of about 136,000 barrels per day, ELF and NAOC facilities by the militants, stressed that total distributable fund for the month under review (VAT inclusive) stood at N346,240 billion while the distributable statutory revenue for the month is N199,132 billion based on budgeted exchange rate of N125 per dollar, adding that this shows  a decrease of N60,135 billion or 23.19 per cent compared to that of July.

Speaking on the shortfall in the  payment of N450 billion which Nigerian National Petroleum Corporation (NNPC) was still withholding from FAAC, the Minister stressed that the corporation was at present facing crisis now hence it will not be pertinent to ask them for such money.


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