FAAC Shares N671.9bn For FG, States, LGs In October

BY CHINYERE OBIORA, LAGOS – The Federation Accounts Allocation Committee (FAAC) said on Wednesday that a total of N671.910 billion has been distributed to the Federal Government, States, and the Local Government Councils (LGCs) as accruable revenue for the month of October 2021.

According to the Committee, the said amount, which is inclusive of Value Added Tax (VAT), augmentations, exchange gains, and non-oil mineral revenue, saw the Federal Government receive N284.292 billion; States – N209.838 billion; and 774 Local Government Councils – N156.282 billion.

On their part, the oil-producing states got N21.498 billion as the 13 percent derivation of mineral revenue for the month under review.

A statement by the Acting Director of Information, Federal Ministry of Finance, Budget and National Planning, Mr Oshundun Olajide, said the decision was taken by FAAC at the end of the National Council on Finance and Economic Development (NACOFED) conference held in Lagos.

In a communique issued by FAAC, it was indicated that total revenue distributable for the current month included gross statutory revenue of N363.849 billion; VAT of N154.849 billion; and exchange gain of N3.217 billion.

“Augmentations of N100 billion and N50 billion from non-oil mineral revenue bringing the total distributable revenue to N671.910 billion”, it said.

The Gross Revenue available from the VAT for the month totalled N166.284 billion as against N170.850 billion distributed in September, representing a shortfall of about N4.566 billion.

The communique also explained that; “The distribution is as follows; Federal Government got N23.227 billion, states received N77.422 billion, LGCs got N54.195 billion, transfers and refunds received N4.789 billion and cost of the collection got N6.651 billion.

“The distributed statutory revenue of N407.864 billion received for the month was lower than the N692.283 billion received for the previous month by N284.419 billion.

“Of this, the Federal Government received N180.551 billion, states got N91.578 billion, LGCs got N70.603 billion, derivation (13 percent mineral revenue) got N21.118 billion, cost of collection received N17.940 billion while transfers and refunds got N26.075 billion,” it stated.

Similarly, the communiqué said in the augmentations of N100 billion, the Federal Government got N52.680 billion; the States received N26.720 billion; while the Local Governments went home with N20.6 billion.

Also, the N50 billion from non-oil revenue was shared in the following order Federal Government – N26.340 billion; States – N13.360 billion; and Local Governments – N10.3 billion.

Other information captured in the communiqué indicated that Companies Income Tax (CIT), Petroleum Profit Tax (PPT), and Oil and Gas Royalties all witnessed a considerable drop in accruals. However, while VAT recorded a slight decline, Import and Excise Duty increased marginally during the period.

The communique, however, disclosed that the balance of the Excess Crude Account (ECA) stands at 60.860 million dollars as at the time of reporting the revenue accruals.