The surge in the earnings from non-oil commodities drove up the monthly payout by the Federation Account Allocation Committee, FAAC, to the three tiers of government by N24 billion to hit N305 billion in June.
The leap was attributed to the marginal rise in non-oil revenue, particularly in companies’ income tax, a report by FBNQuest, an investment and research arm of FBN Holdings, said.
In a report titled: ‘A small pick-up in the FAAC payout’, the firm explained that though the revenue position is an improvement, the payout still falls short of the projected pro rata monthly average of N477 billion this year as the net distribution from the Federation Account and the Value Added Tax (VAT) pool combined is projected at N5.72 billion.
The Federal Ministry of Finance announced after the FAAC meeting last week that the balance in the excess crude account stood at $2.26 billion. The crude oil price averaged $47.1/barrel last month, compared with $42.3/barrel the previous month.
Based on OPEC data, Nigeria’s crude oil production for last month averaged 1.4 million barrels per day (mbpd), 15 per cent lower than the previous month.
“However, data released by Windward, a maritime intelligence firm, revealed that Nigeria exported 1.89mbpd in May. It has been widely reported that vandalised pipelines in the Niger Delta have reduced production; we assume the higher export volume may be due to stored products,” the report said.
According to the report, the Federal Government decided to embark on another relief programme worth N90 billion for state governments which will be disbursed in two tranches, with an initial N50 billion released in three months and another N40 billion in nine months
