By Abimbola Fashakin, Lagos
All the three tiers of government, namely the Federal , state and local government have shared a total sum of N559.03 from the Federation Account.The action, which is considered a feat owing to the dwindling revenue accruing to the country, is a quantum leap as distributable funds increased by N301.32 billion, the highest in almost two years.
Minister of Finance, Mrs Kemi Adeosun, announced this in Abuja on Thursday while addressing newsmen at the end of the FAAC meeting.
She attributed the increase in revenue to efficiency in collection by the revenue generating agencies, adding that “The big cause of the increase is the improvement of non-oil revenue from FIRS. The FIRS improved its performance between last month and this month by N165 billion.
“And that accounted for the change in revenue and also, there was also an improvement of N12.6 billion by Nigeria Customs Service, as well as the exchange gain of N79.2 billion.
“This is a significant improved performance especially customs that was able to do so in spite of the scarcity of foreign exchange and the restrictions on the 41 items. So we are quite encouraged by that because it means that some of the reforms that we had started around collection improvement are beginning to bear fruit,”.
Giving a breakdown of the amount shared, Adeosun said N412.3 billion was distributed under statutory allocation; N67.4 billion under Value Added Tax revenue while the balance of N79.27 billion was allocated from gains made from exchange rate differential.
She said the Federal Government received N199.75 billion; states N101.3 billion, local governments N78.11 billion whileN17.12 billion was shared to oil producing states based on the dervation principle of 13 per cent.
For VAT, she said the Federal Government received N9.7 billion, states N32.35 billion while local governments got N22.67 billion.