Thursday , 28 January 2016
Breaking News

Allocation Drops As FAAC Distributes N593.337BN To FG,States, LGs

The global fall in oil prices has started taking its toll on the country as the Federal Government, States and Local Governments shared the sum of N593.337 billion for the month of October.

The amount shared represents a short fall of N10.192 billion in the amount distributed for the month of September. The Federal Accounts Allocations Committee (FAAC) had the previous month distributed N603.528 billion to the FG, States and LGs.

A breakdown showed that gross revenue witnessed an increase in October with N536.692 billion as against N502.097 in September. Also added to the monies distributed is Value Added Tax (.137 billion), the Nigeria National Petroleum Corporation refund to the Federation Account of N6.330 and SURE-P (35.549).

However, despite the indication by the Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala that FAAC was likely to dip into the Excess Crude Account (ECA) to augment October allocation, the ECA was left at its current $4.1 billion as there was no augmentation for the month.

According to her, the Executive has proposed down to $73 per barrels as its oil benchmark from $78 per dollars for its 2015 budget.

Fielding questions from journalists after the briefing the Minister, Chairman of State Commissioners of Finance, Timothy Odaah reiterated the earlier call by the Federal Government to do away with subsidy as it was not doing the states any good.

According to Odaah, monies paid as subsidy should be given to states to enable them pay contractors and complete existing projects.

“States are suffering, Local Governments are suffering. What contractors do now is that when they raise certificates and you are not able to pay at a particular time they charge interest and that is accumulating,” he said.