The Federation Accounts Allocation Committee on Thursday distributed a total sum of N559.03 billion to the three tiers of government for the month of June 2016. That is the highest revenue shared since January 2015 when N580.38 billion was shared.
The increase in revenue was due to the efficiency in collection by the revenue generating agencies, said minister of finance, Kemi Adeosun.
“The big cause of the increase is the improvement of non-oil revenue from the FIRS. The FIRS improved its performance between last month and this month by N165bn. And that accounted for the change in revenue; and also, there was an improvement of N12.6bn by the Nigeria Customs Service, as well as the exchange rate gain of N79.2bn,” Adeosun told journalists in Abuja after the FAAC meeting which held at the headquarters of the finance ministry.
The revenue shared among the three tiers represents an increase by N253.91 billion from the N305.12 billion shared last month. The last time the government shared above N500 billion in a single month was in August 2015 when N511.8 billion was shared for the month of July.
“This is a significant improved performance, especially by the Customs that was able to do so despite the scarcity of foreign exchange and the restrictions on the 41 items. So, we are quite encouraged by that because it means that some of the reforms that we have started around collection improvement are beginning to bear fruit,” said the minister yesterday.
Giving a breakdown of the amount shared, the minister said N412.3bn was distributed under statutory allocation; N67.4bn under Value Added Tax revenue; while the balance of N79.27bn was allocated from the gain made from exchange rate differentials.
Out of the N412.3bn shared under statutory allocation, Adeosun said that after deducting the costs of collection to the Customs and the FIRS, the Federal Government received N199.75bn; the states, N101.3bn; local governments, N78.11bn; while the sum of N17.12bn was shared to oil producing states based on the derivation principle.
For VAT, she said the Federal Government received N9.7bn; states, N32.35bn; and local governments, N22.67bn.
The minister said, “The gross statutory revenue of N538.78bn received was higher than the N237.46bn received in the previous month by N301.32bn. The average price of crude oil increases from $32.26 in February to $38.64 in March, resulting in $92.99m increase in federation export revenue.”