Economy

FAAC disburse N1.92 trn to 3 tiers of govts in 1st quarter – NBS

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FAAC


Abuja, April 22, 2019 The Federation Account Allocation Committee (FAAC) has disbursed N1.92 trillion to three tiers of government in first quarter of 2019, according to the National Bureau of Statistics (NBS).

The NBS said this in FACC monthly allocation for January, February and March, 2019 Disbursement statistics published on its website and analysed by the News Agency of Nigeria on Monday in Abuja.

The bureau said FAAC disbursed N649.19 billion to the three tiers of government in January, 2019; N660.37 billion in February while the sum of 619.86 was distributed to the three tiers in March.

Out of the N1.92 trillion, the Federal Government got N803.18 billion in the quarter, states received N530.14 billion while the local governments received N398.43 billion.

The breakdown showed that the federal government received N270.17 billion in January, N275.33 billion in February and N257.68 billion in March.

States received N178.04 billion in January, N182.17 billion and N169.93 in March while the local governments received N133.83 billion in January, N136.88 billion and N127.72 billion in March.

In addition, the report said the amount disbursed in January comprised N547.46 billion from the Statutory Account, N100.76 billion from Valued Added Tax (VAT) and N976.53 million exchange gain differences.

The sum of N45.36 billion was shared among the oil producing states as 13 per cent derivation fund in the month.

Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N4.69 billion, N4.04 billion and N8.04 billion respectively as cost of revenue collections.

Further breakdown of revenue allocation distribution to the federal government revealed that the sum of N216.57 billion was disbursed to the federal government’s consolidated revenue account.

In addition, N4.81billion was disbursed as share of derivation and ecology and N2.43 billion as stabilisation fund.

Also, N8.15 billion was shared for the development of natural resources and N5.82 billion to the Federal Capital Territory (FCT), Abuja.

For February, the report said the amount disbursed comprised N497.12 billion from the Statutory Account; N104.47 billion from Valued Added Tax (VAT) and N8.12 billion as excess charges recovered.

According the report, the sum of N50 billion was distributed as FOREX Equalisation Fund and N654.70 million as exchange gain differences.

The sum of N48.49 billion was shared among the oil producing states as 13 per cent derivation fund in February.

Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N5.66 billion, N7.62 billion and N4.07 billion as cost of revenue collections.

Further breakdown of revenue allocation distribution to the Federal Government of Nigeria revealed that the sum of N221.33 billion was disbursed to the Federal Government consolidated revenue account.

In addition, N4.94 billion was disbursed as share of derivation and ecology and N2.47 billion as stabilisation fund.

Also, N8.30 billion was shared for the development of natural resources and N5.90 billion to the Federal Capital Territory (FCT) Abuja.

In March, the report said the amount disbursed comprised of N474.42 billion from the Statutory Account, N96.39 billion from Valued Added Tax (VAT), N4.02 billion as excess bank charges recovered.

According to the report, N44.17 billon was distributed as FOREX Equalisation Fund and N858.46 million as exchange gain differences.

The sum of N50.95 billion was shared among the oil producing states as 13 per cent derivation fund in the month.

Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N3.91 billion, N6.49 billion and N3.19 billion as cost of revenue collections.

Further breakdown of revenue allocation distribution to the Federal Government of Nigeria revealed that the sum of N203.04 billion was disbursed to the Federal Government consolidated revenue account.

In addition, N4.63 billion was disbursed as share of derivation and ecology; N2.31 billion as stabilisation fund.

Also, the sum of N7.77 billion was shared for the development of natural resources and N5.52 billion to the Federal Capital Territory (FCT) Abuja in March.

 

https://nnn.ng/faac-disburse-n1-92-trn-to-3-tiers-of-govts-in-1st-quarter-nbs/

Oil & Gas

FAAC: FG, States, others share N3.88trn in 6 months – Report

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The Federation Accounts Allocation Committee (FAAC) shared N3.879 trillion to the Federal Government, states, local government areas and other statutory recipients in the first half of 2020.


This was contained in the latest edition of the quarterly report on the review of the Nigeria Extractive Industries Transparency Initiative (NEITI) released in Abuja, on Tuesday.

A breakdown of the disbursements showed that N1.53 trillion went to the Federal Government, while the states got N1.29 trillion and the 774 local government areas received N771.34 billion

The N1.53 trillion received by the FG in H1 2020 was 4.28 per cent lower than the N1.599 trillion it got in the first half of 2019 and 7.36 per cent lower than the N1.652 trillion it received in the first half of 2018.

“For states, a total of N1.29 trillion was disbursed in the first half of 2020.

“This was 2.8 per cent lower than the N1.35 trillion disbursed in the first half of 2019, and 5.6 per cent lower than the N1.37 trillion disbursed in the first half of 2020,” the report stated in part.

For local government areas, the 2020 first half disbursements were 2.64 and 3.04 per cent lower than the corresponding disbursements for 2019 and 2018, respectively.

However, disbursements in second quarter(Q2) 2020 were 1.09 per cent higher than total disbursements in Q2 2019 and 3.66 per cent lower than the one for Q2 2018.

FAAC disbursements in the second quarter of 2020 stood at N1.934 trillion.

“This was made up of N739.2 billion to the Federal Government, N629.3 billion to state governments, and N375.4 billion to the 774 local government areas.”

According to the report, the total FAAC disbursements in the second quarter of 2020 was slightly lower than the N1.945 trillion disbursed in the first quarter of 2020.

This aligned with the projections made in the previous issue of the NEITI Quarterly Review, which projected lower FAAC disbursement in the second quarter.

The report attributed the 0.55 per cent decrease in Q2 2020 to a couple of factors, including rebound in oil prices in the second quarter as a result of ease of lockdowns by countries across the world.

The other was the adjustment of the official exchange rate by the CBN from N307 to a dollar to N360 to a dollar in March resulting in higher naira disbursements.

FAAC disbursements in the first quarter and second quarter of 2020 were very volatile, with the difference in total disbursements between months ranging between N58.9 billion and N199.3 billion.

“During this period, the disbursements were very volatile in the first half of 2020, compared to 2018 and 2019.

“Unlike 2018 and 2019 where aggregate disbursements increased and decreased in successive months, in 2020 they fell for two straight months, increased in one month, and then decreased for two straight months.”

In the months under consideration in 2020, aggregate disbursements fluctuated by large amounts, compared to 2018 and 2019.

“Aggregate disbursements were N716.3 billion in January and this fell to N647.4 billion in February.

“Thereafter, disbursements fell to N581.6 billion in March, before increasing to N780.9 billion in April.

“Disbursements then fell to N606.2 billion in May and to N547.3 billion in June.

“These figures indicate differences of N68.9 billion between January and February, N65.7 billion between February and March, N199.3 billion between March and April, N174.7 billion between April and May, and N58.9 billion between May and June.

” For comparison, the highest inter-month difference in the first half of 2018 was N62.9 billion, while the corresponding figure for 2019 was N63.5 billion.

“Thus, there have been very wide fluctuations in aggregate disbursements so far in 2020,” the report also stated in part.

NEITI in the report also disclosed that from January to May 2020, actual government revenue was N1.62 trillion, representing 62 per cent of the expected pro-rata revenue of N2.62 trillion from the revised budget.

This, the NEITI said explained a shortfall of 38 per cent in government revenue for the first five months of the year.

As oil prices continue to rise, and with the increased pace of economic activities, it projected that Government revenue will perform better in the second half of 2020, with the possibility of shortfalls in revenue compared to budgeted figures.

On total net FAAC disbursements and deductions for states for the first half of 2020, the report observed wide disparities.

Osun State had the lowest net disbursement of N13.13 billion, while Delta State had the highest net disbursement of N100.81 billion.

“This implies that Delta State received seven times the disbursement that Osun State received.

“Total net disbursements received by Delta State (N100.81 billion) was higher than the combined total net disbursements of N99.47 billion received by six states – Osun, Cross River, Plateau, Ogun, Gombe and Ekiti.

“Also, the combined total net disbursements of N321.29 billion received by the four highest receiving states of Delta, Akwa Ibom, Rivers, and Bayelsa were higher than the combined total net disbursements of N314.08 billion received by 16 states.

The States are Osun, Cross River, Plateau, Ogun, Gombe, Ekiti, Zamfara, Kwara, Nassarawa, Ebonyi, Taraba, Benue, Adamawa, Ondo, Bauchi, and Abia.

“While Lagos State had the highest deductions, Yobe State had the lowest.

ENO/

Edited By: Kamal Tayo Oropo/Bayo Sekoni
Source: NAN

 

https://nnn.ng/faac-fg-states-others-share-n3-88trn-in-6-months-report/
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Oil & Gas

DPR generates N673.7bn revenue in 1st half of 2020

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The Department of Petroleum Resources (DPR) has generated a total sum of N673.7 billion in the first half of this year.


Its Spokesman, Paul Osu, said in a statement that the Director of DPR, Mr Auwalu Sarki, disclosed this during the visit of the Federation Allocation Accounts Committee (FAAC) Post-mortem Sub-Committee to the department on Wednesday.

The FAAC delegation was led by the Chairman of the committee, Mr Kabir Mashi.

He said that DPR was a revenue collection agency for revenues accrueable to government from oil and gas industry operations and assured that the agency would surpass its revenue target for 2020.

According to him, DPR operates a cashless revenue system which enables all revenue remittances to be paid directly to the federation account in total compliance with the Treasury Single Account (TSA) policy of government.

He said DPR conducts comprehensive quarterly and annual reconciliations of revenue payments to ensure accurate and timely remittances to the federation account.

Sarki stated that DPR was responsible for collection of oil and gas royalties which representated proportional value of oil and gas production and sales from oilfields, gas flare penalties imposed for gas flaring.

He said the agency was also responsible for collection of concession rentals paid for grant of oil and gas acreages by exploration and production companies and miscellaneous oil revenue.

This consists of statutory application fees, licence and permit fees and penalties.

According to him, DPR conducts comprehensive quarterly and annual reconciliations of revenue payments to ensure accurate and timely remittances to the federation account.

Responding, Mashi commended DPR for putting in appropriate measures in ensuring timely and accurate collection of revenues for the federation.

Mashi said their visit was to strengthen collaboration with revenue collection agencies of government to ensure seamless analysis of revenue inflows into the federation account.

He encouraged DPR to continue its positive revenue collection drive and to initiate policies that would continue to stimulate the economy to significantly increase current oil and gas contribution of 10 per cent to Gross Domestic Product (GDP).

Edited By: Wale Ojetimi (NAN)

https://nnn.ng/dpr-generates-n673-7bn-revenue-in-1st-half-of-2020/
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Economy

Abuse of incentive scheme has led to revenue leakages — FIRS

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The Federal Inland Revenue Service (FIRS) says a systemic abuse of the pioneer incentive scheme instituted by the Federal Government has led to tax revenue leakages for the three tiers of government.


Mr Abdullahi Ahmad, the Director, Communications and Liaison Department said this in a statement issued in Abuja on Friday.

Ahmad said the Executive Chairman, Mr Muhammad Nami said this when he received states Commissioners of Finance who visited him in his office in Abuja.

Nami pledged to block the tax revenue leakages in order to generate more revenue for the three tiers of government.

According to him, the tax revenue accounts for nearly 70 per cent of what have been shared at the last FAAC meeting and lauded the collaboration between the service and the States Commissioners of Finance.

This Nami, said was key to bringing about increase in tax revenue.

He added that without this collaboration, it would be difficult for government to meet its obligations to the citizenry in areas like infrastructure development and salary payment, which he said could lead to social dislocation.

The executive chairman emphasised the need to diversify the economy in order to create more sources of taxable income and increase tax revenue for  the nation.

He charged the states to focus on other forms of taxes like the Stamp Duty which he described as “the black gold” that had been ignored in the past.

The chairman also charged all Ministries, Departments and Agencies to deduct Withholding Tax from contracts at point of payment.

Nami also solicited the states’ support in terms of taxpayer sensitisation campaigns and education, stating that rental obligation was incomplete without the payment of Stamp Duties.

According to him, if these initiatives are pursued at both local and state levels, more revenue will be generated.

Edited By: Ese E. Ekama (NAN)

https://nnn.ng/abuse-of-incentive-scheme-has-led-to-revenue-leakages-firs/
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Environment

Humanitarian Affairs Minister updates NEC on readiness for flood management

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Mrs Sadiya Farouq, Minister of Humanitarian Affairs, Disaster Management and Social Development, has made a presentation to the National Economic Council on Flood Risk Management in Nigeria for 2020.


Farouq virtually briefed State House correspondents after the virtual NEC meeting presided over by Vice President Yemi Osinbajo on Thursday.

The virtual NEC was anchored from the Presidential Villa, Abuja.

She said that the purpose of the presentation was to highlight flood risk reduction measures and also to advocate for early action at the state level to mitigate the cost on property, livelihood and environment.

“There are various structural and non-structural measures that have to be taken into consideration as regards the causes and impact of flooding and these include—adherence to early warning advisories; improvement in  waste management, enforcement of building rules and town planning among others.

“Our ministry through NEMA has analysed the 2020 rainfall predictions and we have also launched public enlightenment and sensitisation and campaigns.

“And NEMA is also identifying safe grounds in the case of displacement as a result of flooding.

“We also respectfully call on the state governors to take into the consideration the losses of flooding in 2012 and 2018.

“We have already highlighted high risk local governments in each of the federation that will require immediate intervention ranging from preparedness, response and residence building efforts,’’ she said.

Farouq said that there were  feedbacks  from the governors of Kebbi and Kwara states on the issue of dredging of river as well as  plans being made to support farmers that might be affected by the flooding,

She appealed to state governors for support in averting the flood that had been forecast.

On his part, Laolu Akande, Senior Special Assistant to the President on Media and Publicity, Office of the Vice President, said that council discussed the forex situation in Nigeria regarding the divergent rates.

“ The vice president suggested that the council resolve that CBN and Finance Minister should engage the Nigeria Governors Forum leadership on this issue; especially the concerns of the governors on the monetisation rate used on FAAC and revert to NEC,’’ he said.

Edited By: Felix Ajide (NAN)

 

 

https://nnn.ng/humanitarian-affairs-minister-updates-nec-on-readiness-for-flood-management/
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