BY COBHAM NSA – Despite the current harsh economic environment, over N1.5 trillion hit the Federation account as accruing revenue during the first quarter of year 2021.
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) released the figure as total remittances from revenue generating agencies in the country during the period.
Speaking while receiving a Revenue Performance report from the Post- Mortem Sub Committee of the Federal Account Allocation Committee (FAAC) in Abuja, the Commission Chairman, Engineer Elias Mbam assured that there will be no relenting on efforts at ensuring increased revenue generation into the national purse.
In the report, the Federal Inland Revenue Service (FIRS) received accolades as the agency with the highest remittance of N759.85 billion into the Federation Account.
Similarly, it was cheering news from the Ministry of Mines and Steel Development (MMSD) which surpassed its target by generating over N2.469 billion as its revenue contribution for the period under review.
A table capturing remittances from the revenue agencies also indicated that Department of Petroleum Resources (DPR) generated N452.510 billion while Nigeria Customs Service (NCS) brought in N275.654 billion within the quarter.
The RMAFC boss also stated that about N496.39 billion was remitted into the Federation Account as Value Added Tax (VAT) for the quarter.
Mbam explained that the current figures exceeded projected tax revenue by N36.8 billion, which represents about 108.01 per cent for the period being considered by the Commission.
He also addressed issues around recoveries of outstanding arrears due to the Federation Account, saying the RMAFC, partnering with FAAC’s Post-Mortem Sub-Committee, received an arrears payments totalling N260.13 billion for the quarter.
The Commission Chairman noted that the amount recovered was about N845.12 billion more than what the Sub-Committee raked into the Federation Account coffers during the corresponding period last year.
He therefore reiterated RMAFC’s resolve to sustain efforts at increasing revenue generation into the Federation account as well as equitable distribution of the accrued revenues to all three tiers of government.
The Federation Account is currently being managed on a legal framework that allows funds to be shared under three major components.
They are statutory allocation, Value Added Tax distribution; and allocation made under the 13 per cent derivation principle.
For now, the Commission continues to remain mute on possible date that Nigerians should expect to welcome a new revenue formula for the country.
Under current arrangement that stakeholders insist is completely outdated and not in line with today’s realities on ground, the statutory allocation sees the Federal Government cornering 52.68 per cent of the shared revenue leaving states and local governments with 26.72 per cent and 20.60 per cent respectively.
For VAT revenue distribution, Federal Government has 15 per cent; the States receive 50 per cent; with 35 per cent going to the Local governments Council.
