FAAC’s April Allocation Slides to N281.5billion

The monthly allocation shared among the federal, states and Local governments for April plunged by N18.2 billion, as the tiers of government received a total of N281.500 billion for April, on Wednesday, May 25,in Abuja

This figure is in contrast to the N299.747 billion shared in March

Minister of Finance Kemi Adeosun attributed the drop in allocation to the massive decline recorded in the price of crude oil.

She said there was a revenue loss of $45.9m as a result of the drop in average price of crude oil from $39.04 in December, 2015 to $29.02 in January.

The Minister stated that “while oil production increased slightly between December 2015 and January 2016 despite explosions at Escravos terminal, she said force majeure declared at Brass terminal, shut-in and shut-down of pipelines at other terminals for repairs maintenance affected government revenues.”

These developments also led a decline of N18.8 billion in gross statutory revenue from N232.61 billion in March to N213.81 billion in April.

As a result of these fall in revenue and what was left for the three tiers of governments to share, the statutory revenue distributable also dropped to N207.878 billion as against N226.875 billion previously shared.

Of this amount, the federal government got N101,215 billion, states received N51.338 billion while local governments got N39.579 billion.

The oil producing states got N15.745 billion as their 13 per cent derivation while balance in the Excess Crude Account (ECA) now stands at $2.261 billion.