LOCAL GOVERNMENT WONT SHARE IN $2 BILLION OIL CASH
Mar 15th, 2010 | By Camil Rufai | Category: Lead Story
A court has stopped the Federal Government from giving to local governments their share of the $2billion excess crude fund approved for release by Acting President Goodluck Jonathan.
The order coincided with Jonathan’s release of another $1billion from the excess crude fund for sharing among the three tiers of government.
Minister of State for Finance, Mr. Remi Babalola, said the ministry received the order after it had credited the funds into the local governments’ accounts.
He was speaking at the Federation Accounts Allocation Committee (FAAC) meeting in Abuja, at the weekend.
The order came from a suit which Association of Local Governments of Nigeria (ALGON) filed. They are claiming that they are entitled to some fees for services rendered to the local governments over the Paris Club debt exit payment.
Babalola said Jonathan approved the sharing of $1billion from the excess crude account among the Federal States’ and local government for national development projects.
The money, he said, would be released “not later than 16
it will be credited with the credited with the monthly allocation.”
On February 11, Jonathan approved the sharing of $2billion from the excess crude account.
The additional $1billion brings to $3billion the total amount to be shared by all the tiers of government.
Babalola explained that the $3billion would have come at the same time but the Vice President only approved $2billion initially.
He said the three tiers of government, FAAC members and Accountant General of the Federation had approved the decision.
The committee shared N273.239billion from the Federation Accounts among the Federal Government, states and Local Governments for February.
According to a breakdown of the allocation, signed by the Accountant General of the Federation (AGF) Mr. Ibrahim Dankwambo issued Abuja, noted that the amount included Value Added Tax (VAT) but excluded the augmentation and exchange difference not distributed this month as the 2010 budget was yet to be passed.
The amount, according to him, “shows a decrease of N56.467billion or 17.12% compared to the amount distributed in January, 2010.”
The total revenue available from VAT was N44.580billion as against N46.173billion distributed in the preceding month, resulting in a decrease of N1.593billion.
FAAC however allocated N108.756billion to the Federal Government and earmarked N55.146billion to the states and N42.528 to the local councils, representing 52%, 26.72% and 20.60% respectively. It allocated N22.212billion for 13 per cent mineral derivation revenue.
Babalola said the Nigerian National Petroleum Corporation (NNPC) would bring its schedule for the repayment of its N450billion debt by next month.
