FAAC Gifts FG, States, LGs N739.965bn As September Revenue

• As accruals from VAT, CIT, Import duty dip marginally

BY EDMOND ODOK – The three tiers of government have shared a total of N739.965 billion from the Federation Accounts Allocation Committee (FAAC) as distributable revenue for the month of September 2021.

A breakdown of the N739.965 billion revenue indicates that Statutory Revenue stood at N577.765 billion; Value Added Tax (VAT) revenue came to N159.096 billion while Exchange Gain was calculated as N3.104 billion.

A communiqué after the FAAC virtual meeting for October 2021, explained that the sum of N126.272 billion was total deductions for the cost of collection, statutory transfers, savings, and refunds in September 2021.

This is as the meeting also captured the balance in the Excess Crude Account (ECA) as $60.860 million for the period under review.

Similarly, the communiqué confirmed that from the total Distributable Revenue of N739.965 billion, the Federal Government got N301.311 billion; the State Governments received N220.272 billion, with the Local Government Councils getting N164.176 billion.

For the oil-producing states, the sum of N54.206 billion went to them as 13 per cent derivation revenue.

Of the distributable Statutory Revenue of N577.765 billion available for the month, the Federal Government went home with N276.008 billion, the State Governments got N139.995 billion while the Local Government Councils have N107.930 billion in their kitty. Here, the amount given to the relevant States as 13% derivation revenue came to N53.831billion.

However, N170.850 billion put on the table as available VAT gross revenue for September, was lower than the N178.509 billion available in the month of August by N7.659 billion.

The Communique said the sum of N4.920 billion allocated to the North East Development Commission (NEDC) and N6.834 billion cost of revenue collection deducted from the N170.850 billion VAT earnings left the distributable VAT income at N159.096 billion.

Consequently, VAT revenue distribution from the N159.096 billion was captured as the Federal Government – N23.864 billion; the State Governments – N79.548 billion; and the Local Government Councils – N55.684 billion.

Furthermore, of the N3.104 billion Exchange Gain revenue for the period, the Federal Government got N1.438 billion; State Governments were given N0.729 billion, the Local Government Councils got N0.562 billion, while N0.375 billion was shared among relevant States as 13 per cent derivation revenue.

On the whole, the communiqué stated that the month of September 2021 saw Petroleum Profit Tax (PPT), Oil and Gas Royalties, and Excise Duty increasing considerably while there was a marginal drop in the Companies Income Tax (CIT), Value Added Tax (VAT), and Import Duty.