MINISTER EXPLAINS N493.828B ALLOCATION
BY: OMOKHUALE PUAH
A total sum of N493.828billion has been allocated for the month of July, 2016, by the councils of The Federal government, state government and local government, says the Minister of Finance, Kemi Adeosun.
The allocation which was done by the Accountant General of the federation, constitute of the Gross Revenue, which includes the solid minerals at N275.102billion, the Net allocation at N258.151, the Gross Value added tax at N66.987 and the total revenue distributed at 335.759bn.
According to the Minister of Health, “the amount which was shared includes the months revenue at N258.151bn, Value added Tax (VAT) of N66.987bn, exchange gain was N70.037; the Exchange Gain Differential Claim at N36.494bn which was for the month of May, 2016, additional distribution was N50.165bn, which was gotten from excess PPT and 1.373bn as the excess bank charges recovered from the year 2008 to 2012. It also includes refund to the Federal Government by the Nigerian National Petroleum Corporation.
“The Federal government received N129.212bn (52.68per cent); states received N65.538bn (26.72 percent), local government council received N50.527bn (20.60 percent): then, the oil producing states received N12.874bn (13 percent)”.
Also, with the remaining revenue from VAT the Federal government received N9.646bn (15 percent): states received N32.154bn (50 percent), the Local Government councils received N22.508bn (35 percent) and less than four percent cost of collection to the Federal Inland Revenue Service.
It also include the fact that the N50.165bn from the remaining profit from petroleum tax should be shared among the tiers of government, according to the formula for revenue allocation.