The federal, states and local governments have shared N2.53 trillion as proceeds of revenues from the Federation Account from January to July, the News Agency of Nigeria reports. The figures were derived from documents obtained from the Federal Ministry of Finance, showing that the total revenue generated for the months under review was N2.73 trillion.
However, deductions were made for cost of collection to Nigeria Customs Service (seven per cent); Federal Inland Revenue Service (four per cent) and Department of Petroleum Resources (four per cent). The funds are usually shared the following month; for example, revenues generated in January is shared in February; thus, the revenue shared between January and July was actually generated between December 2015 and June, 2016.
In the months under review, the Federal Government alone received a total of N1.1 trillion; states N727.5 billion and local governments N544.9 billion. This was shared based on the formula of Federal Government receiving 52.68 per cent of the amount generated, states, 26.72 per cent and local governments, 20.6 per cent. Oil producing states shared an additional N148.1 billion based on the 13 per cent derivation.
The revenue shared was the mineral earnings from the Nigeria National Petroleum Corporations, NNPC, and DPR and non-mineral revenue from Customs and FIRS. Additional revenue came from Petroleum Profit Tax, Import Duty, Exchange gains and NNPC refunds.
Also, in May, N1.5 billion, being excess bank charges, was recovered into the Federation Account and shared among the three tiers. To break it down, in January, N417.1billion was shared and the Federal Government received N180.3 billion; states, N113.5 billion and local governments, N85.4 billion, while N208.2 billion was shared as derivation revenue.
In February, N370.3 billion was shared and Federal Government received N155.4 billion, states N104 billion and local government N77.8 billion. N345.1 billion was shared in March with the Federal Government taking N144.5 billion, states N96.4 billion and local governments, N72.1 billion. Oil producing states also got an additional N23.2 billion.