A small decline in the FAAC distribution

The total monthly payout by the Federation Account Allocation Committee (FAAC) to the three tiers of government amounted to N636bn (US$2.08bn) in February (from January revenues). This was a decrease of N19bn from the previous monthly distribution. The commentary of the accountant-general of the federation, cited in the local media, noted that oil export sales in the month declined by US$114m although the average price of crude picked up from US$56.8/b in December to US$57.7/b.

· In terms of revenue streams, the inflow from both VAT and oil royalties was significantly higher while that from companies’ income tax and petroleum profits tax declined on the month. There was a marginal increase in the take from import duty.

  • · The gross statutory allocation consisted of N405bn and N134bn for mineral and non-mineral revenue respectively.
  • · From our chart we can see a broad upward trend in the distribution over the past 12 months. It is far from spectacular, however, and largely reflects the pick-up in crude oil production since Q1 2017. What is missing is evidence of a turnaround in the non-oil economy.
  • · When the economy was still in robust growth mode in 2014, a distribution at this level would have been a poor month.

Sources: Federal Ministry of Finance; NBS; local media; FBNQuest Capital Research


  • We have taken the data for the latest payout from local media reports. The accountant general’s office supplies the revenue numbers up to December 2016, shared out in January 2017, and the National Bureau of Statistics through to December, distributed in January.

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