Wednesday, December 27, 2017 /08:50AM / FBNQuest Research
The
total monthly payout by the Federation Account Allocation Committee (FAAC) to
the three tiers of government amounted to N610bn (US$1.99bn) in December (from
November revenues).
This
was an increase of N77bn from the previous monthly distribution, which was made
more than two weeks late because of challenges by the state governors to the
accounts submitted by the NNPC (Good Morning Nigeria, 11 December). The
higher payout was driven by a rise in the average crude price from US$48.7/b the
previous month to US$52.1/b.
The
allocation was made earlier in the month than usual because the committee was
anxious for state governments to make their monthly salary payments before the
holidays. States have also received the third instalment of refunds for
pre-2005 overpayments to Paris Club and other external creditors.
The gross statutory distribution was N529bn. This was supplemented by
VAT receipts of N77bn, which were N9bn lower than the previous month. Indirect
tax payments such as VAT are a guide to household consumption, so we should
nuance any remarks about broader economic recovery.
The chart shows a broad upward trend in the distribution over the past
12 months. In part, however, this reflects the pick-up in crude oil production
since Q1. We would like to herald a sustained boost to non-oil revenue
collection but have to talk of a tentative recovery for the time being.
We
have taken the data for the latest payout from local media reports. The
accountant-general’s office supplies the revenue numbers up to December 2016,
shared out in January, and the National Bureau of Statistics through to
September, distributed in October.
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