By Sandra Onyekwere
Federal Accounts Allocation Committee (FAAC) on Wednesday distributed a total sum of N420 billion amongst the three tiers of government in November being the statutory allocations for the month of October.
Addressing journalists at the end of the FAAC meeting at the finance house in Abuja, the Minister of Finance, Mrs Kemi Adeosun, says government has unfolded plans to roll out tax incentives for the manufacturing sector in order to stimulate our declining economy and roll it out of recession soon.
Adeosun claims that the challenges with the manufacturing sector was as a result of foreign exchange issues triggered by inconsistencies in forex policies. She insisted that the manufacturing sector will thrive very well if there is consistency in forex policy.
Meanwhile, this is the second month allocation for FG, States and Local government has remained stagnant as the same amount of N420 billion was shared in September after distributing N510.27 billion in the previous month.
From the statutory revenue breakdown, it shows that FG got N96.674 billion (52.68 per cent); States got N49.035 billion (26.72 per cent); Local governments got N37.804 billion (20.60 per cent) while the oil producing states got N13.547 billion as 13% derivation revenue.
According to the figures realised from the Account General of the Federation office, the gross statutory revenue N238.716 billion received for the month was lower than the N279.746 billion received in the previous month by N41.030 billion.
Crude oil export volume decrease while the average price of crude oil dropped resulting in revenue loss of about $51 million in the Federation export sales.
Force Majeure was declared at Qua Oboe Terminal and the NGL lifting programmes with the Force Majeure at Forcados Terminal still in place.
Shut-in and Shutdown of pipelines for repairs and maintenance due to attack on delivery pipelines also contributed to the low revenue.
Also volume of import duty and Companies Income Tax (CIT) was in a decrease while Petroleum Profit Tax (PPT) and oil royalty recorded marginal increase.
The distributable statutory revenue for the month is N203.952 billion while the sum of N6.330 billion was refunded by NNPC to the Federal Government.
The sum of N109.108 billion was proposed for distribution just as an exchange gain of N37.319 billion was proposed for distribution making the total revenue distributable for October including VAT to N420 billion.