•Naira Rain As FG, States Finally Share N1.275 Trillion Revenue For August, Sept  • FG Withdraws N18.383 B from ECA, PPT Account for distribution

REPRIEVE has finally come the way of some cash-strapped states in the country. Close to two months now, many of them have encountered difficulties in meeting their workers’ wages and contractors’ commitment following the inability of the Federation Accounts Allocation Committee (FAAC) to distribute Federally generated revenue as a result of a face-off between the Federal Government and the States over statutory revenue arrears owed States.
Friday, state finance commissioners were all smiles as the federal government, the states and the local councils shared a whopping N1.275 trillion being statutory revenue for the months of August and September.
The FAAC also withdrew from the Excess Crude Account and Petroleum Profit Tax account the sum of N18.383 billion earlier posted to that account in line with the statutory revenue distribution framework, for sharing by the three tiers of government. The amount normally represents 10 per cent of crude oil proceeds for the month.
The breakdown of the revenue is as follows: for August, the sum of N642.329 billion was declared while N614.336 billion was declared for September. Then there was an additional N18.383 billion fund, which was meant to be saved under the Excess Crude Oil Account, Petroleum Profit Tax and Royalty Proceeds Profit Account but which was equally reverted and put forward for sharing.
The Accountant -General of the Federation, Mr. Jonah Otunla who is the FAAC Secretary said in the Communique explaining the chart of revenue distribution: “The gross revenue of N525.610 billion received for the month was lower than the N548.393 billion received in the previous month by N22.783 billion. This was due to the slight decline in crude oil production as result of a force majeure declared at Brass Terminal, maintenance issues and theft activities.”
He added: “The distributable statutory revenue for the month is N507.227 billion. No augmentation was proposed for the month. The sum of N7.617 billion refunded by the NNPC is also distributed. In addition, the sum of N35.549 billion is proposed for distribution under the Sure-P programme. The total revenue distributed for the current month (September), including VAT is N614.336 billion.
Otunla said: “It was proposed that the N18.383 billion transferred to the Excess Crude Oil Account, Petroleum Profit Tax and Royalty Proceeds Profit Account be reverted and added to the statutory distributable amount for sharing.”
Last month, the states turned down revenue allocation for the month of August, insisting that the federal government must clear all outstanding statutory revenue arrears, which arose following shortfall in revenue as a result of the drop in the quantity of crude oil production in the Niger Delta.
The Federal Government has had to be augmenting the differences, which piled the arrears until last month when it came out to tell the states that there was no more money to be augmenting the shortfall.
After exhaustive deliberations, a compromise was reached, namely, that from September, this year, only the actual revenue collected would be shared and not the budget estimates or projection.
The development led to calls by some governors and members of the new Peoples’ Democratic Party (PDP) on the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala to resign, a call she has dismissed as a non-issue.