Business - Business & Economy - News - September 23, 2021

FAAC shares N697bn to three tiers of govt. in August

MEDIATRACNET

The three tiers of the government shared a total of N696.965 billion as Federation revenue for August 2021, the Federation Accounts Allocation Committee (FAAC) said in Abuja.

In the communiqué issued at the end of its virtual meeting for September 2021, the committee said out of the total distributable revenue, the Federal Government received N289.257billion share, the State Governments N217.183 billion, and the Local Government Councils N161.541 billion, while about N28.984 billion was shared to the oil bearing States as 13% derivation revenue. 

The communique signed by the Accountant General of the Federation, Ahmed Idris, said the total distributable revenue comprised of statutory revenue of N477.504 billion; Value Added Tax (VAT) revenue of N166.228billion; Exchange Gain of N2.830billion; Excess Bank Charges Recovered of N0.403 billion and N50billion from non-oil revenue.

Idris said during the month, about N72.295 billion was the total deductions for statutory transfers and refunds as well as cost of collection by the three revenue generation agencies, namely the Federal Inland Revenue Service (FIRS), Department of Petroleum Resources (DPR) and Nigeria Cusroms Service (NCS).

Further details contained in the Communiqué showed that during the month, VAT and Import Duty collections recorded significant increases, while Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties and Excise Duty recorded decreases.

On VAT, the gross revenue collection of about N178.509 billion was higher than the N151.134 billion collected in July by N27.375billion. 

From that amount, about N5.141 billion allocation to the North East Development Commission (NEDC) and N7.140 billion cost of revenue collection were deducted from the N178.509 billion, leaving N166.228billion as the distributable VAT revenue for the month. 

Out of the N166.228 billion distributable VAT revenue, the Federal Government received N24.934 billion, the State Governments N83.114 billion and the Local Government Councils N58.180 billion.

Also, the Federal Government got N1.334 billion from the Exchange Gain revenue of N2.830 billion; the State Governments N0.677 billion; the Local Government Councils N0.522 billion and N0.297 billion was allocated to the oil bearing States as 13% derivation revenue. 

Again, from the Excess Bank Charges of N0.403 billion recovered, the Federal Government received N0.212 billion, the State Governments N0.108 billion, and the Local Government Councils N0.083 billion.

From the N50 billion non-oil revenue, the Federal Government received N26.340 billion, the State Governments N13.360 billion, and the Local Government Councils N10.300 billion.
 
The accrual in the Excess Crude Account (ECA) during the month brought the balance to about $60.857million.   

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