Sam Ikeotuonye
Lagos — The nine oil-producing states in Nigeria received N22.86 billion as 13 percent oil derivation fund for the month of May 2023, according to the Federation Account Allocation Committee, FAAC.
The amount is part of the N786.16 billion May revenue shared by the three tiers of government in the country – federal, states and local councils – for the month.
Nigeria’s oil producing states are Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers.
The 13 percent derivation fund is enshrined in section 162, sub-section 2 of the Nigerian constitution and is for oil-producing communities, but, sent through the state governments.
FAAC said in a communiqué issued at the end of its latest meeting in Abuja that it shared N786.16 billion among the three tiers of government for the month under review. It said the amount is N130.23 billion higher than the N655.93 billion shared in April, and is, according to FAAC, the highest this year and the first increase since January.
At the meeting, chaired by the new Accountant General of the Federation, Dr Oluwatoyin Madein, the Federal Government received N301.89 billion, the states N265.88 billion and the local governments N195.54 billion.
“The N786.16 billion total distributable revenue comprised distributable statutory revenue of N519.55 billion, distributable Value Added Tax revenue of N251.61 billion, Electronic Money Transfer Levy of N14.37 billion, and Exchange Difference revenue of N0.64 billion,” FAAC said in the communiqué.
It added: “For the month of May 2023, the gross revenue available from the Value Added Tax was N270.2 billion. This was higher than the N217.74 billion available in the month of April 2023 by N52.45 billion.
“The Federal Government received N37.74 billion, the State Governments received N125.80 billion and the Local Government Councils received N88.06 billion from the N251.61 billion distributable Value Added Tax revenue.
“The N14.37 billion Electronic Money Transfer Levy was shared as follows: the Federal Government received N2.16 billion, the State Governments received N7.189 billion and the Local Government Councils received N5.03 billion.
“From the N0.64 billion Exchange Difference revenue, the Federal Government received N0.31 billion, the State Governments received N0.16 billion, the Local Government Councils received N0.12 billion and the sum of N0.06 billion was shared to the relevant States as 13 per cent mineral revenue.”
The committee further stated that from the N519.55 billion distributable statutory revenue available for the month, the Federal Government got N261.69 billion; the State Governments N132.73 billion; and the Local Government Councils, N102.33 billion.
Follow us on twitter
