The federal government, states and the local councils yesterday shared the sum N 616. 245b from the revenue accrued into the Federation Account and proceeds of the Value Added Tax, VAT in the month of July.
Included in the sum was a N16. 453 b augmentation from the Excess Crude Oil proceed. The three tiers of government shared N1.3 trillion, last month.
Details of distribution showed that the federal government took N263. 237 billion; states got N 159. 634; while the local governments were given N 120. 885 billion. The nine oil producing states received an additional N 54. 289 b as derivation from oil revenue.
The decision to augment the federation earnings was contrary to earlier decisions of the government that the three tiers of government would live within the earnings into the federation account, unless if oil price fell below the budgeted oil benchmark.
The Excess Crude oil account is expected to provide resources for the much-expected Sovereign Wealth Fund, SWF, which has been planned to better manage resources rather than sharing it among the state actors, each month.
The minister of state for finance Alhaji Yerima Lawan Ngama, stated that the reason the SWF had not taken off was because the people to manage the fund have not been appointed. The minister then insisted that once the SWF takes off fully there will not be the excess crude account.
An analysis of July gross earnings showed that Federation Account yielding N 906. 759 billion Value Added Tax disbursements; N61.607.July Federation account revenue compared positively over N883.300 realised in June and almost twice what was budgeted for the month, N568.181 billion.
The increase in revenue was attributed to “improved crude oil production and lifting witnessed during the month as a result of improvement in operations at some terminals after maintenance works”, as well as, “by companies income tax payments made by various large companies as well as the collection of arrears of royalties”.
Click to signup for FREE news updates, latest information and hottest gists everydayIncluded in the sum was a N16. 453 b augmentation from the Excess Crude Oil proceed. The three tiers of government shared N1.3 trillion, last month.
Details of distribution showed that the federal government took N263. 237 billion; states got N 159. 634; while the local governments were given N 120. 885 billion. The nine oil producing states received an additional N 54. 289 b as derivation from oil revenue.
The decision to augment the federation earnings was contrary to earlier decisions of the government that the three tiers of government would live within the earnings into the federation account, unless if oil price fell below the budgeted oil benchmark.
The Excess Crude oil account is expected to provide resources for the much-expected Sovereign Wealth Fund, SWF, which has been planned to better manage resources rather than sharing it among the state actors, each month.
The minister of state for finance Alhaji Yerima Lawan Ngama, stated that the reason the SWF had not taken off was because the people to manage the fund have not been appointed. The minister then insisted that once the SWF takes off fully there will not be the excess crude account.
An analysis of July gross earnings showed that Federation Account yielding N 906. 759 billion Value Added Tax disbursements; N61.607.July Federation account revenue compared positively over N883.300 realised in June and almost twice what was budgeted for the month, N568.181 billion.
The increase in revenue was attributed to “improved crude oil production and lifting witnessed during the month as a result of improvement in operations at some terminals after maintenance works”, as well as, “by companies income tax payments made by various large companies as well as the collection of arrears of royalties”.
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