The total monthly payout by the Federation Account Allocation Committee (FAAC) to the three tiers of government picked up a little in January (from December revenues) from N387bn to N400bn (US$1.31bn). The federal finance minister, Kemi Adeosun, noted that mineral revenues amounted to N146bn in December, adding that force majeure at the Forcados, Qua Iboe and Brass oil export terminals continued to limit inflows. According to prevailing convention, the oil revenues cited are those of three months earlier.
The statutory distribution of N225bn was supplemented by VAT of N79bn, an exchange-rate gain of N53bn and excess petroleum tax payments of N43bn.
The 2016 budget projected the net distribution from the federation account at N4.30trn and from the VAT pool at a further N1.42trn. The pro rata monthly average of N477bn was not achieved after May once we deduct the unbudgeted extras such as exchange-rate gains (see above).
Neither the president’s 2017 budget speech nor the 2017-19 Medium-Term Expenditure Framework allows us to reach a comparable figure for next year. Until the budget has been approved and signed off by the president, FAAC distributions cannot be made on the basis of the new projections and assumptions.
Adeosun said that the balance in the excess crude account was unchanged, at US$2.45bn.
We have taken the latest payout from the local media. Official sources provide the revenue numbers up to September, distributed in October. We use the data for gross distributions while the local media cite a combination of gross and net payouts to the three tiers.