News - March 22, 2022

FAAC: Nigeria’s three tiers of govt. share N590.6bn allocation for February 2022

MEDIATRACNET
The three tiers of government, namely Federal, States and Local Government Councils shared a total of N590.546 billion as statutory allocations from the Federation Accounts for February 2022.
The details were contained in a communiqué issued at the end of a virtual meeting of the Federation Account Allocation Committee (FAAC) on Tuesday.
The communique issued from the FAAC Secretariat by the Accountant General of the Federation, Ahmed Idris, did not show if the final amount available for sharing was after the Nigerian National Petroleum Company Limited made deductions from the revenue it was supposed to remit to the Federation Account.
Prior to the meeting, reports said the national oil company had given its indication to deduct N242.53billion as recoverable subsidy on Premium Motor Spirit, popularly called petrol, from the Federation Account this month.
However, the Accountant General of the Federation said the N590.546 billion total distributable revenue comprised distributable statutory revenue of N337.432 billion; Value Added Tax (VAT) revenue of  N165.635 billion; Excess Bank Charges of N7.479 billion, and non-mineral revenue of N80.000 billion.
The Committee said in February 2022, the total deductions for cost of collection was N23.989 billion and  the total deductions for statutory transfers and refunds was N80.498 billion.
The balance in the Excess Crude aoil Revenue Account (ECA), the Committee said, was $35.371million.
The communiqué also confirmed that from the total distributable revenue of N590.546 billion, the Federal Government received N236.177 billion, the State Governments N190.007 billion, and the Local Government Councils N140.612 billion, while a total of N23.750 billion was shared to the relevant oil producing states as 13 percent derivation revenue.
The distributable statutory revenue of N337.432 billion was available for the month, out of which the Federal Government got N165.248 billion, State Governments N83.816 billion and Local Government Councils N64.618 billion, with about N23.750 billion shared to the relevant States as 13% derivation revenue.
During the month, FAAC said gross revenue available from the Value Added Tax (VAT) was N177.873 billion, which was lower by N13.349 billion than the N191.222  billion available in January 2022 .
Also, about N5.123 billion allocation to the North East Development Commission (NEDC) and N7.115 billion disbursed to the revenue collection agencies as cost of collection were deducted from the N177.873 billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N165.635 billion.
From the distributable Value Added Tax (VAT) revenue, the Federal Government took N24.845 billion, the State Governments got N82.818 billion, and the Local Government Councils received N57.972 billion.
From the total Excess Bank Charges of N7.479 billion, the Federal Government received N3.940 billion the State Governments N1.998 billion, and ithe Local Government Councils N1.541.

The AGF said the Federal Government received N42.144 billion, the State Governments received N21.376 billion and Local Government Councils received N16.480 billion from the N80.000 billion non-Mineral revenue.

During the month, the communique said there was significantly, while Oil and Gas Royalties increased marginally. Import and Excise Duties, Companies Income Tax (CIT), and Value Added Tax (VAT) recorded considerable decrease.

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