Fg Explains How N2.73t Revenue Shortened To N2.53t

The News Agency of Nigeria (NAN) yesterday reported that the Federal, State and Local government have allotted a sum of N2.53 trillion, as proceeds of the revenue from the federation account of January to July.

This report was obtained from the documents filed by the ministry of Finance, which showed that the revenue was N2.73 trillion, but certain deductions were made for cost of collection, by the Nigeria custom service at seven percent, Federal Inland Revenue service at four percent and the Department of petroleum resources at four percent.

The funds usually, are distributed the next month, but as regards this for January and July, it was obviously generated between December 2015 and June 2016.

According to review, N1.1 trillion was allotted to just the Federal government, N727.5 billion was allotted to the State government, and N544.9billion was allotted to the Local government.

This allotment was based on the formula of the federal government, receiving revenue of 52.68 percent, a percentage of 26.72 for the state and 20.6 percent for the local government.

The oil producing state distributed an additional N148.1billion, which was based on the 13 percent derivation. This distribution was gotten from the mineral earnings of the Nigerian National Petroleum corporation (NNPC) and DPR and some none mineral revenues from the customs and FIRS.

Following the report, additional revenue came from Petroleum Profit Tax, import Duty, Exchange gains and NNPC refunds.

In May this year, N1.5 billion was distributed as excess bank charges, which was recovered into the Federation account and allotted between the three governmental tiers.

In the review, it was recorded that in January this year, N417.1billion was distributed, as the Federal government was allotted N180.3billion , as the state was allotted N113.5 billion and N85.4billion was allotted the Local governments, as N208.2 billion was distributed as the revenue derivation.

In February this year, N370.3 billion was distributed. The Federal Government received an allocation of N155.4 billion, the state government received N104 billion and the Local government received N77.8 billion.

In March this year, N345.1billion was distributed as revenue. The federal government received a sum of N144.5 billion, N96.4 billion was allocated to the state government and the Local government received N72.1 billion, while a list of oil producing states received N23.2billion in addition.