The Federation Accounts Allocation Committee (FAAC) yesterday stated that the issue of workers’ salaries prompted it to share N611 billion to the three tiers of government.
The minister of state for finance, Dr. Yerima Ngama, stated this yesterday.
He added that the N450 billion outstanding debt by the Nigerian National Petroleum Corporation (NNPC) was also resolved as the NNPC had started to repay the said amount.
A breakdown of the shared N611 billion shows that N553.14 billion would be paid from money earned under statutory revenue while the balance of N58.30 billion would be paid from Value Added Tax revenue.
Going by the statutory allocation of N553.14 billion, the federal government would receive N260.71 billion representing 52.68 per cent;? the 36 states would share N132.24 billion or 26.72 per cent, while the 774 local government areas would get N101.95 billion.
The balance of N58.23 billion would be paid to the oil producing states based on the 13 per cent principle of derivation.
Also, the VAT revenue would be shared thus: FG N8.74 billion, states N29.15 billion and LGs N20.40 billion.
Ngama said the money would be credited to their respective accounts yesterday.
Ngama who presided over the meeting, told journalists in Abuja that the meeting which was stalled on October 19 was responsible for the non-payment of the October salaries of public workers.
He said the delay had made it imperative for the accounts of the three tiers of government to be credited on Wednesday night.
This move, he noted, would enable the public workers to get their salaries latest by Friday (tomorrow).
“This amount would be credited to all tiers of government tonight (Wednesday) to enable them continue with their responsibilities.
“Most of our states cannot pay salaries except the FAAC meeting is held and the funds are distributed, but we have some states which can actually pay their salaries whether FAAC holds or not, and there are some agencies of government that can pay and some cannot pay.
So if you say FAAC has delayed the payment of salaries, then, that is true. We have held the FAAC and the funds would be distributed to the various MDAs tonight and we hope that by Friday latest all employees of federal and state governments will get their salaries.”
On the N450 billion debt owed the Federation Account by the NNPC, the minister said that the corporation had begun to repay the debt.
He however added that only the portion due to the states and local governments would be paid in 32 instalments.
“What the NNPC is repaying is the portion that will go to the states and local governments. You know the FG has its own share, states and local governments also have their own shares.
“So you take the share of federal and state governments and you spread it over 32 months; the share of states and local governments, amounts to repayment of N7.6 billion every month.
“And I am assuring you that NNPC has paid its share for the month of September and October. So we have two instalments already with us and this would be distributed to the states and local governments tonight.”
On the controversial subsidy deduction by the NNPC from the Federation Account, he said, “The issue of the stay of action on subsidy on recovery of past or outstanding subsidy by NNPC was agreed between myself and the management of the NNPC.”
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