Allocation from the Federation Account to be shared by the three tiers of government in February, plunged by N17.38 billion compared to what was shared in January.
The allocation for December 2015, distributed last month was N387.77 billion compared to the N370.38 billion distributed yesterday for January.
The drop in the allocation was attributed to the fall in oil prices from $43.4 to $39.04 which resulted in revenue loss amounting to $22.55 million.
Finance Minister Mrs Kemi Adeosun told reporters at the end of the monthly Federation Account Allocation Committee (FAAC) meeting in Abuja on Tuesday night, February 23, that the drop in the funds distributed was caused by several reasons including oil production shut- in and shut downs; continued drop in oil price and the diversion of Federation Account revenue to fund the Joint Venture Cash (JVC) call commitment to oil majors in the production of crude minerals.
She confirmed that as a result of the continued oil price plunge and inability of government to meet the JVC cash call commitment, government was working a modified carrier strategy to raise funds from the debt market to fund the commitments as it could no longer be guaranteed from oil proceeds.
