FAAC Distributes N639.901bn As Sept Revenue To FG, States, LGs

• Excess Crude Account now $72.409m

BY COBHAM NSA – The Federation Accounts Allocation Committee (FAAC) says a total of N639.901 billion has been distributed as September 2020 revenue to the three tiers of government and relevant agencies.

It stated that the total distributable revenue of N639.901 billion consist of statutory revenue of N341.501 billion; Value Added Tax (VAT) revenue of N141.858 billion; and N39.542 billion from Forex Equalisation fund.

Others are N45 billion from Non-oil Excess Revenue and N72 billion Federal Government Intervention Revenue.

The figures were announced after the October FAAC monthly meeting chaired by Permanent Secretary, Federal Ministry of Finance, Alhaji Aliyu Ahmed and held physically at the Ministry’s headquarters in Abuja.

A communiqué issued by FAAC indicated that the gross statutory revenue of N341.501 billion available for the month of September 2020 was lower than the N531.830 billion received in the month of August by N190.329 billion.

Similarly, the gross VAT revenue of N141.858 billion also witnessed an
N8.372 billion drop from the August earnings that stood at N150.230 billion.

According to the communiqué, from the N639.901 billion distributable revenue, the Federal Government got N255.748 billion; the State Governments received N185.645 billion; while N138.444 billion went to the 774 Local Government Councils coffers.

Also, the relevant oil producing States got N36.188 billion as 13 per cent mineral revenue, with cost of collection and transfers allocated N23.876 billion for the month under review.

Further breakdown showed that the Federal Government got N161.131 billion from the gross statutory revenue of N341.501 billion; the State Governments went home with N 81.728 billion while the Local Government Councils received N63.009 billion.

The relevant States also got N21.688 billion as 13 per cent mineral revenue derivation, just as N13.964 billion went into total cost of collection, transfers and refunds.

From VAT revenue of N141.858 billion, the Federal Government received N19.789 billion; State Governments got N65.964 billion; the Local Councils received N46.175 billion, while cost of collection, transfers and refunds had N9.930 billion allocation for the month.

The N39.542 billion Forex Equalisation revenue also had the Federal Government receiving N18.123 billion; the States getting N9.192 billion; the Local Government Councils going home with N7.087 billion and the relevant States keeping N5.140 billion as 13 per cent mineral revenue.

It was also explained that of the N45 billion Non-oil Excess Revenue, the Federal Government’s portion was N23.706 billion; the States got N12.024 billion while the Local Councils received N9.270 billion.

Income distribution from the N72 billion Federal Government Intervention Revenue saw N32.999 billion going to the federal coffers; the State governments got N16.737 billion, the Local Government Councils received N12.904 billion and the relevant States kept N9.360 billion as 13 per cent mineral revenue

The Communiqué however highlighted that September 2020 revenue profile had the Companies Income Tax (CIT) and Oil and Gas Royalty decreasing significantly; Import Duty and Value Added Tax (VAT) dropping marginally; while Petroleum Profit Tax (PPT) and Excise Duty were on the positive side.

A statement by the Director, Information, Press and Public Relations, Office of the Accountant General of the Federation (OAGF), Henshaw Ogubike also indicated that the current balance in the Excess Crude Account (ECA) as at October 15, 2020 was $72.409 million.