Gross statutory revenue earnings for April 2023 declined by about N141.210 billion as the three tiers of government, namely the Federal, 36 States, and the Federal Capital Territory (FCT) shared a total of N655.932 billion as statutory allocation for the month.
At the end of the meeting of the Federation Account Allocation Committee (FAAC) held in Abuja on Thursday, a Secretariat report by the Office of the Accountant General of the Federation showed that the gross statutory revenue of about N497.463 billion declined from about N638.673 billion recorded in March.
The decline in the gross revenue for the month was attributable to the significant drop in the earnings from all revenue-generating sources, including Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Import and Excise Duties, and Value Added Tax (VAT). Only Electronic Money Transfer Levy (EMTL) recorded marginal improvement during the month.
Nigeria is still struggling to cope with the pressure as a result of declining oil production as the country’s current oil production capacity of about 1.4 million barrels per day dropped below the official budget output benchmark of 2.3 million barrels.
With below-par output capacity, the country’s export volumes have also been affected, culminating in decreasing revenue earnings, with distributable statutory revenue of about N497.463 billion.
Details from the communique issued at the end of the meeting showed that apart from the drop in oil revenue, gross revenue realized from Value Added Tax (VAT) stood at about N217.743 billion. This was lower by about N1.043 billion than the N218.786 billion realized in March 2023.
The distributable VAT revenue was put at about N202.762 billion, while Electronic Money Transfer Levy (EMTL) revenue was about N14.516 billion, N50 billion as augmentation from Foreign Exchange Equalization revenue, and N24 billion as augmentation from the non-mineral revenue.
The total deductions for statutory transfers and refunds were about N120.287 billion.
From the total distributable revenue of about N655.932 billion, the communique said the Federal Government received about N248.809 billion, or 52.68 percent; the 36 State Governments N218.307 billion, or 26.72 percent, and the 774 Local Government Councils N160.60 billion, or 20.60 percent.
A total sum of N28.216 billion was shared with the relevant oil producing States as 13 percent derivation revenue.
From the Gross Statutory Revenue of N497.463 billion, about N18.793 billion was deducted as Costs of Collection by the three revenue collecting agencies, namely the Federal Inland Revenue Service (FIRS), Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigeria Customs Service (NCS), while a total of N114.016 billion was allocated for Transfers and Refunds.
The remaining balance of N364.654 billion was distributed to the Federal Government (N180.659 billion), States (N91.632 billion), Local Government Councils (N70.647 billion), and Oil Derivation (13% Mineral Revenue) for oil-producing states (N21.716 billion).
Details on the N217.743 billion distributable VAT revenue showed that about N8.710 billion was allocated for Costs of Collection, while about N6.271 was allocated for Transfers and Refunds, leaving a balance of N202.762 billion distributed to the. Federal Government N30.414 billion, the State Governments N101.381 billion, and the Local Government Councils N70.967 billion.
Also, the N14.516 billion realized from Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government N2.177 billion, the State Governments N7.258 billion, and the Local Government Councils N5.081 billion, while N0.605 billion was allocated for Costs of Collection.
The total revenue of N50 billion from FOREX Equalization was shared as follows: the Federal Government N22.916 billion, the State Governments N11.623 billion, the Local Government Councils N8.961 billion, and N6.500 billion shared to the relevant States as 13 percent mineral revenue.
From the N24 billion non-mineral revenue, the Federal Government received N12.643 billion, the State Governments N6.413 billion, and the Local Government Councils N4.944 billion.
The communique showed that the balance in the Excess Crude Account (ECA) was about $473,754.57. The ECA is a special account where funds realized as a difference between the prevailing crude oil price at the international oil market and the approved benchmark crude oil price in the annual budget is domiciled.