The total monthly payout by the Federation Account Allocation Committee (FAAC) to the three tiers of government amounted to N627bn (US$2.05bn) in April (from March revenues). This was a decline of N20bn from the previous distribution. A rise in the average crude oil price from US$63.1/b in February to US$65.7/b, the official commentary noted, did not compensate for a fall in the tonnage exported. Distributions have recovered from the lows seen from 2015 through to early 2017, and have now exceeded N600bn for five months in succession.
- The gross statutory allocation consisted of N361bn and N120bn for mineral and non-mineral revenue respectively, compared with N444bn and N113bn the previous month. Over and above the allocation, the distribution included N84bn from VAT receipts and N62bn in an fx equalisation payment.
- March was a good month for oil royalties and a poor month for petroleum profit tax. Inflows from other sources (VAT, companies’ income tax and import duties) were broadly stable.
- The commentary noted a decline in the balance in the excess crude account from US$2.3bn to US$1.8bn.
- The distributions provide a sizeable boost to liquidity for the money market. This latest payout amounted to an inflow of about N300bn this Monday. It represented the monies due to the state and local governments. The FGN’s share is paid into the treasury single account.
Revenue allocations (gross) by the FAAC (N bn)
- We have taken the latest payout details from local media reports. The data for earlier months in the chart are drawn from the NBS.