Federal, states share N580.4bn allocation in December The three tiers of government shared N580.4 billion as allocation for the month of December 2014. Details from the Federation Accounts Allocation Committee, FAAC, secretariat released on Friday in Abuja showed that the figure was lower by about N48 billion from a total of N628.775 billion shared in November. The decline in the revenue available for sharing follows a trend the country’s economy has been grappling with since the price of global oil prices began sliding from an average of $110 at the beginning of the year to a six year low on Thursday. Crude oil price on Friday dropped to $43.14 a barrel, below the oil benchmark price of $65 per barrels proposed by the Federal Government in the 2015 Budget by almost $22. The 2015 appropriation bill is currently before the National Assembly for approval. The drop in revenue appears to also affect earnings from the non-oil sector of the economy, with a decline from N115.162 billion realized in November to about N107.8billion against a revenue target of N165.323billion. A breakdown of the allocations showed that the Federal Government took about N220.484billion, or about 52.68 per cent; the 36 states and the Federal Capital territory, FCT, N111.832 billion, or 28.72 per cent; and the 774 Local Governments N86.218billion, or 20.6 per cent. A total of N47.221billion went to the nine oil producing states as 13 per cent derivation revenue. Despite the decline in revenue available for distribution, the allocation to the Federal Government for the month was higher than the allocation in November by N24.02billion; states (N12.183billion), Local Governments (N9.393billion) and oil derivation (N7.307billion). The Accountant General of the Federation, AGF, Jonah Otunla, attributed the dip in non-oil revenues partially to timelines for tax payment by companies, which are yet to fall due. Mr. Otunla said in a statement that total revenue, including transfer to the excess crude revenue account, ECA, which stood at N500.079 billion in November, also went down to N490.031 billion in December, 2014 as against N582.935 billion proposed in the 2014 budget.
Posted on: Mon, 19 Jan 2015 05:14:52 +0000
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