EconomyNigeria

FG, states, LGAs get N668.898b federation allocation for May 2018

Nigeria’s Ministry of Finance has confirmed distribution of N668.898 billion as the federation allocation for May figures to the three tiers of government pending the resolution of the disagreement that led to the rejection of the fund when due last month.
Owing to disagreement on remittances by the Revenue Generating Agencies, especially the NNPC, the sharing of revenues for May 2018 that was meant to be distributed in June 2018, was put on hold.

A statement from the Ministry of Finance said the urgent need to cushion the undue hardships being experienced by workers nationwide made it necessary to distribute the fund while efforts are being intensified to address the unsatisfactory remittances.

The N668.898 billion was said to made up of statutory distributable sum of N575.475 billion and N 93.423 billion from the Value Added Tax (VAT).

The total revenue realised for the month, was shared in line with the extant formula as follows: Federal Government – N282.223 billion; State Governments – N181.167 billion; and Local Government Councils – N136.490 billion. The Oil Producing States received N53.071 billion as 13 per cent derivation. The sum of N15.947 billion was paid to the revenue generating agencies as costs of collections.

The statutory revenue of N575.475 billion received for the month of May 2018 was lower than the N613.057 billion received for April 2018 by a total of N37.582 billion. From the total statutory revenue of N575.475 billion, the Federal Government was given N268.770 billion; the States – N136.324 billion; Local Government Areas – N105.100 billion; the Oil Producing States – N53.071 billion, and the revenue generating agencies received N12.210 billion as costs of collections.

For the month of May 2018, the total revenue of N93.423 billion from the Value Added Tax (VAT) was N5.458 billion higher than the N87.965 billion distributed in April 2018. From the total of N93.423 billion, the Federal Government received N13.453 billion; the States received N44.843 billion; the Local Government Councils received N31.390 billion, while N3.737 billion was received by the revenue collecting agencies.

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