Federation Account revenue rose steeply in June as the federal, states and local governments got monthly allocation from the Federation Account of N559.03 billion. The revenue increased by N301.32 billion, the highest in almost two years.
Minister of Finance, Kemi Adeosun, announced this in Abuja on Thursday while addressing newsmen at the end of the FAAC meeting
Adeosun attributed the increase in revenue to efficiency in collection by the revenue generating agencies, especially the Federal Inland Revenue Service.
She said: “The big cause of the increase is the improvement of non-oil revenue from FIRS.
“The FIRS improved its performance between last month and this month by N165 billion.
“And that accounted for the change in revenue and also, there was also an improvement of N12.6 billion by Nigeria Customs Service, as well as the exchange gain of N79.2 billion.
“This is a significant improved performance, especially Customs that was able to do so in spite of the scarcity of foreign exchange and the restrictions on the 41 items.
“So we are quite encouraged by that because it means that some of the reforms that we had started around collection improvement are beginning to bear fruit.”
Giving a breakdown of the amount shared, Adeosun said N412.3 billion was distributed under statutory allocation, N67.4 billion under Value Added Tax revenue, while the balance of N79.27 billion was allocated from gains made from exchange rate differential.
She said the Federal Government received N199.75 billion, states N101.3 billion, local governments N78.11 billion, while N17.12 billion was shared to oil producing states based on the derivation principle of 13 per cent.
For Value Added Tax, Adeosun said the Federal Government received N9.7 billion, states N32.35 billion, while local governments got N22.67 billion.
She added: “The gross statutory revenue of N538.78 billion received was higher than the N237.46 billion received in the previous month by N301.32 billion.
“The average price of crude oil increased from $32.26 in February to $38.64 in March 2016, resulting in $92.99 million increase in federation export revenue.
“There was an outstanding increase in Companies Income Tax and Petroleum Profit Tax with complementary increases in import duty and royalties.”
Adeosun put the balance in the Excess Crude Account at $3.94 billion as at July 20, indicating an increase of $1.68 billion over the the $2.26 billion in the previous month.
When asked about plans to stimulate the economy away from the looming recession, the minister said there was no need for panic as the fundamentals of the economy were still strong.
Meanwhile the Chairman of the Commissioners of Finance Forum, John Inegbedion, said with the improved revenue for the month, all 36 states would be able to pay salaries for the month.Also, the Commissioner of Finance, Cross River State, Asuquo Ekpenyong, said the state would start processing May and June salaries for payment.
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