The total monthly payout by the Federation Account Allocation Committee (FAAC) to the three tiers of government picked up strongly in July (from June revenues) from N462bn to N652bn (US$2.13bn). This is the highest distribution since the N692bn shared in July 2016, and consistent with the recent commentary emerging from the Federal Inland Revenue Service. Encouragingly, the accountant-general, Idris Ahmed, noted after the committee meeting that non-mineral revenue had risen from N181bn the previous month to N339bn.
He singled out the healthy growth in receipts from companies’ income tax (CIT) and petroleum profits tax. Historically, June is the start of the seasonal surge in CIT collection. Data from the CBN for 2016 show receipts of N74bn in June, N233bn in July and N122bn in August.
The FGN’s payout was N289bn. When we add its sizeable independent revenue, we are approaching the projection in the 2017 budget of N5.08trn from all sources over 12 months.
The figures for mineral revenue tell a less healthy story. Ahmed observed that the average crude price had declined from US$55.2/b in May to US$50.3/b, and crude volumes for the account of the federation by 3.2 million barrels.
The payout to state governments, independent of the 13% bonus for oil-producing states, amounted to N179bn. Within the recent second distribution under the Paris Club “overpayments”, some states received as much as N10bn.
We have taken the latest payout from the local media. The accountant-general’s office provide the revenue numbers up to December 2016, distributed in January. We use the data for gross distributions while the local media cite a combination of gross and net payouts to the three tiers.