Friday, October 27, 2017 /9:59AM / FBNQuest Research
The total monthly payout by the Federation Account Allocation Committee (FAAC) to the three tiers of government amounted to N558bn (US$1.82bn) in October (from September revenues), representing a 13% decline when compared with N638bn recorded in the previous month. The decline was partly linked to the 8.2% decrease in average crude oil prices during the period compared with the previous month.
However, the commentary from the federal finance ministry disclosed that there was an increase in revenue from export sales due to improved oil production.
The payout from the statutory allocation was N424bn. There was an additional N83bn from VAT payments, compared with N87bn the previous month. Furthermore, N51bn generated from the forex equalisation account was added to the distribution.
The payout to state governments, independent of the 13% derivation bonus of N35bn for oil-producing states, amounted to N100bn. Most state governments are still struggling with financial stability and remain overly dependent on the monthly FAAC payout. A fiscal sustainability index recently launched by BudgIT shows Rivers, Lagos, Ogun, Kano and Akwa Ibom emerging as the top five states (Good Morning Nigeria, 26 October 2017.)
The balance in the excess crude account (ECA) currently stands at US$2.31bn.
We have taken the latest payout from the local media. The accountant-general’s office provides the revenue numbers up to December 2016, distributed in January, and the National Bureau of Statistics through to July, shared in August.