Business - Business & Economy - News - July 17, 2021

Nigerian govt., States, Local Councils share N733.1bn in June 2021

MEDIATRACNET

The Federal Government, along with the 36 States and the Federal Capital Territory and the 774 Local Government Councils shared a total of N733.095 billion as allocation from the Federation Account in June 2021.
The Federation Account Allocation Comiitittee (FAAC) disclosed this at the end of its virtual monthly meeting for the month of July 2021.
Of the N733.095 billion total distributable revenue, the Committee said statutory revenue was about N585.752 billion; distributable Value Added Tax (VAT) revenue (N143.652 billion) and Exchange Gain of N3.691 billion.
In June 2021, the committee said about N87.469 billion was deducted by the three revenue agencies, namely Federal Inland Revenue Service (FIRS), Department of Petroleum Resources (DPR) and Nigeria Customs Service (NCS), as cost of collection, statutory transfers and refunds.
Also, the Committee said the balance in the Excess Crude Oil Revenue Account (ECA) stood at about $60.853 million.   
The committee said in the communiqué issued at the end of the meeting that out of the total distributable revenue of N733.095 billion, the Federal Government received N304.952 billion; the State Governments N215.572 billion, and the Local Government Councils received N161.100 billion.
The sum of N51.470 billion was shared to the relevant oil producing States as 13 percent derivation revenue.
The distributable statutory revenue available for distribution was about N585.752 billion for the month.
From this, the Federal Government received N281.624 billion, the State Governments N142.843 billion and the Local Government Councils received N110.126 billion. The sum of N51.159 billion was given to the relevant States as 13 percent derivation revenue.
In the month of June 2021, the gross revenue available from the Value Added Tax (VAT) was N154.465 billion, which was lower than the N181.078 billion available in the month of May by N26.613 billion. The sum of N4.634 billion allocation to North East Development Commission (NEDC) and N6.179 billion cost of revenue collection was deducted from the gross Value Added Tax (VAT) revenue of N 154.465 billion, resulting in the distributable Value Added Tax (VAT) revenue of N143.652 billion.
From the N143.652 billion, the Federal Government received N21.548 billion, the State Governments received N71.826 billion and the Local Government Councils received N50. 278 billion.
From the Exchange Gain revenue of N3.691 billion, the Federal Government received N1.781 billion, the State Governments receive N0.903 billion, the Local Government Councils received N0.696 billion and N0.311 billion was given to the relevant States as 13% derivation revenue.
The Communiqué said that in the month of June 2021, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Import and Excise Duty recorded substantial increases, while Value Added Tax (VAT) decreased significantly.

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