States and local governments in the country may be in for more hard times as allocation from the Federation Account dropped by over N80 billion for September to N429 billion against N510 billion in July.
This was disclosed by the Permanent Secretary of the Ministry of Finance, Dr. Mahmoud Isa Dutse, in Abuja after the monthly meeting of the Federation Account Allocation Committee, FAAC, on Thursday.
According to Dutse, the decline was as a result of activities of Niger Delta militants, that affected receipt from sale of crude despite an improvement in the price of the commodity at the international market.
Dutse further disclosed that crude oil export volume dropped by 1.5 million barrels in June, 2016 as a result of the activities of Niger Delta vandals, appealing that something has to be done to normalise the situations in the oil rich region.
The Permanent Secretary also fingered the Force Majeure declared at Bonny terminals and the subsisting one at the Forcados terminal as well as the shut-in and shut-down of pipelines for repairs and maintenance.
Dutse further disclosed that there was decrease in the volume of dutiable imports, receipts from Joint Venture Cash Call, foreign companies income tax and Value Added Tax (VAT).
For the month of September, the federal government got N120.351 billion; state governments received N61.044 billion; local governments were given N47.062 billion while mineral producing states got N13.729 billion from statutory distributable income.
Also, the three tiers of government shared N61.694 billion with the federal government receiving N9.254 billion; state governments, N30.847 billion and local governments, N21.593 billion.
An additional N41.402 billion exchange gains accruals and another N63.386 excess Petroleum Profit Tax (PPT) were shared among the three beneficiaries.
By Timothy Enietan-Matthews….
RipplesNigeria …without borders, without fears
The post More hardship, as federal allocation drops for Sept appeared first on Ripples.