Despite the lingering controversies over under-remittance of collected revenues by the Nigeria national Petroleum Corporation (NNPC) to the Federation Account, the Federation Accounts Allocation Committee (FAAC) on Friday confirmed the disbursement of N668.8 billion to the three tiers of government for the month of May this year.
The Director of Information in the Federal Ministry of Finance, Hassan Dodo, stated that the disbursement did not signify an end to the dispute between the states and the Federal Government over the issues raised by the states against the corporation’s under-remittance of revenue to the Federation account
The Director stated: “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.
“However, the urgent need to cushion the undue hardships being experienced by workers nationwide has made it necessary to distribute the May figures, totalling N668.898 billion to the three tiers of government”, Dodo added.
- Advertisement -
He, however, assured that efforts were being intensified to address the unsatisfactory remittances.
According to him, the N668.89 billion shared was made up of statutory revenue of N575.47 billion and N93.42 billion from Value Added Tax (VAT).
He stated that the Federal Government received N282.22 billion; state governments, N181.16 billion; and local government councils, N136.49 billion from the disbursements.
This is even as the Director disclosed that the oil-producing states got additional N53.071 billion as 13% derivation while N15.947 billion was paid to the revenue generating agencies as costs of collections.
A source in the FAAC confirmed that the committee’s meetings would be suspended indefinitely until the discrepancies in the NNPC revenue collections and remittances are resolved at the highest level of government.
