The Federation Account Allocation, disbursed among three tiers of government in October dropped by N31.8 billion, which is a far cry from the N143.6 billion shared in September.
The breakdown was part of a report on Sunday, November 20, released by the News Agency of Nigeria, from Office of the Accountant-General of the Federation in Abuja.
The report showed the revenue allocated for each state in October was less than what they got from the Federation Account in September.
Minister of Finance Mrs. Kemi Adeosun, represented by the Permanent Secretary, Mr. Mahmoud Isa-Dutse, at the last FAAC meeting, attributed the low revenue earnings of the month to several factors.
Adeosun attributed the drop to the loss of $45.5 million in Federation Export sales. Shut-in and shut-down of pipelines for repairs and maintenance contributed to the drop.
Other reasons were decrease in volume of dutiable imports receipts from Joint Venture Cash Call, Foreign Companies Income Tax and Value Added Tax.
The federation funds are shared in arrears; revenue generated in January is shared in February. Thus, the revenue was generated in September and shared in October.
The key agencies that remit funds into the federation account are the Nigeria National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS).
During the Federation Account Allocation Committee (FAAC) meeting in October, federal, states and local governments shared N455 billion as against the N516 billion shared in September.
The revenue distributed include Gross Statutory revenue, Value Added Tax, exchange gain, N63.3 billion excess Petroleum Profit Tax and 13 per cent derivation to oil-producing states.
