Friday, January 26,
2018 /08:54AM /FBNQuest Research
total monthly payout by the Federation Account Allocation Committee (FAAC) to
the three tiers of government amounted to N655bn (US$2.15bn) in January (from
December revenues), representing a 7% increase when compared with N610bn
recorded in the previous month. We attribute the higher payout largely to a
rise in the average crude oil price from US$52.1/b in November to US$56.8/b.
We also note the efforts by revenue
collection agencies. Non-oil revenue from the FIRS and Nigeria Customs Service
together amounted to N169bn.
The payout from the statutory allocation
was N540bn. There was an additional N81bn from VAT payments, compared with
N77bn the previous month. This increase is not a surprise, given the holiday
season in December. Furthermore, N31bn generated from the fx equalisation
account was added to the distribution.
The payout to state governments,
independent of the 13% derivation bonus of N48bn for oil-producing states,
amounted to N150bn. Many state governments have started to implement the
initiative to reduce recurrent costs, launched by the FGN’s efficiency unit.
The plus side should be increased revenue for capital projects within states.
The balance in the excess crude account
(ECA) still stands at US$2.31bn.
We have taken the details of 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 October, distributed in November.
- Fitch Affirms Nigeria''s Lagos State at ''B ''; Outlook Negative
- FAAC Disburses N609.96bn in December 2017 – NBS
- FAAC: Re-adjusting to The New Norm
- FAAC Disburses N532.76bn in November 2017 - NBS
- FAAC to the Rescue of States
Generate N149.45bn as IGR in Q3 2017 - NBS
- Rivers Now
the State of States