Following the N250billion the Nigerian National Petroleum Corporation (NNPC) owed the Federation Account, it has so far paid a total of N45.7billion, the Minister of State for Finance, Yerima Ngama, revealed yesterday.
NNPC owed the Federation Account the sum of N450billion in view of subsidy deductions, of which it agreed to pay N250 billion to States and local governments in 32 installments, while the remaining balance has been written off by the federal government.
Similarly, the minister who presided over the meeting of the Federation Accounts Allocation Committee(FAAC) yesterday in Abuja, told journalists that a total of N614.004 billion was distributed among the three tiers of government for the month of January, 2012.
He informed that for last month, the NNPC paid N7.617billion into the Federation Account.
He said the distributable statutory revenue for the month was N368.186 billion which showed a decrease of N85.554 billion when compared to that of December 2011.
He said the distributable statutory revenue for the month was N368.186 billion which showed a decrease of N85.554 billion when compared to that of December 2011.
Going by the statutory allocation, the federal government would receive N260.187billion, the 36 States would share N131.970billion, while local governments would receive N101.744billion.
The balance of N60.249billion would be paid to the oil producing States based on the 13 per cent principles of derivation.
However, in addition to the N7.617billion paid by NNPC, the total revenue distributable for the current month, including value-added-tax was N614.004billion and this shows a decrease of N2.921billion compared to the amount shared in December, 2011.
In addition, the sum of N187.090billion was proposed as augmentation as a result of the shortfall in distributable revenue.
In his words:“What the NNPC is repaying is the portion that will go to the States and local governments. You know the federal government has its own share,States and local governments also have their own share.
“So when you take the share of federal and State governments and you spread it over 32 months, for the share of states and local governments, that amounted to repayment of N7.16billion every month.
The NNPC started payment in October, and the N7.16billion it paid last month is the sixth installment, so far, N45.700billion has been refunded by the corporation.”
SOURCE: Leadership Newspaper, 23 February 2012. http://www.leadership.ng/nga/
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