Deduction of bailout suspended
The three tiers of government on Thursday share among themselves the sum of N299.747 billion from the Federation Account and proceeds of the Value Added Tax for the month of March as revenue allocation for the month.
It was gathered that Financial Commissioners of the States were displeased over the poor allocations which they said would not meet their financial obligations for April.
The figure represented a dwindling profile of the nation’s revenue which has continued to take its toll on funds available to the three tiers of government.
The gross statutory revenue stood at N 232 .819 billion which was N N30 . 880 less than the N270. 499 billion recorded in the previous month.
A total of N 64 billion was realised from the Value Added Tax, VAT.
The Federal government took a total of N 109 .113 from the Statutory Allocation and N 9.250 billion from VAT.
The states got a total of N 56 billion, while local governments received N 44. 1billion. The nine oil producing states got an additional N 19. 75 billion, representing 13 per cent derivation on oil revenue.
The Permanent Secretary of the Ministry of Finance, Alh Mahmoud Dutse who, presided over the Federation Account Allocation Committee (FAAC) meeting blamed the low oil price and shut – ins for the low revenue.
However, the commissioners’ complaint over the meagre allocation prompted Minister of Finance, Mrs. Kemi Adeosun, to go to the Villa to brief the president on the challenges at hand.
Following the briefing and the request earlier presented by the governors, states were granted a form of relief as the monthly deductions from their allocations to pay for the bailout they earlier received was suspended.