BY EDMOND ODOK – The Federation Accounts Allocation Committee (FAAC) has distributed N640.310 billion as the January 2021 revenue allocation to the three tiers of government.
Rising from its virtual conference held on Thursday in Abuja, FAAC said the total sum shared includes cost of collection to Nigeria Customs Service (NCS), Department of Petroleum Resources (DPR) and the Federal Inland Revenue Service (FIRS).
According to a communique issued at the end of its meeting, of the N640.310 billion, the Federal Government got N226.998 billion while the States and Local Government councils received N177.171 billion and N131.399 billion respectively.
Equally on the revenue distribution list are the oil producing states with N26.777 billion as 13 per cent derivation from mineral revenue and N75.966 billion recorded as Cost of Collection/Transfer and Refunds.
The communique also indicated that the gross revenue available from Value Added Tax (VAT) for January 2021 stood at N157.351 billion, representing about N14.007 billion drop from N171.358 billion figure shared in the preceding month of December 2020.
Detailed breakdown of the VAT distribution showed that Federal Government received N21.950 billion, the States got N73.168 billion, Local Government Councils received N51.218 billion, while FIRS and NCS were credited with N11.015 billion as Cost of Collection.
For the distributable statutory revenue, the N482.958 billion that came in was higher by over N45.703 billion from the N437.256 billion received in the preceding month. Of this amount, the Federal government got N205.047 billon; States received N104.003 billion; and LGs got N80.162 billion.
Likewise, N28.777 billion and N64.951 billion were listed as 13 per cent derivation for oil producing states and Cost of Collection/ Transfer and Refund respectively.
Furthermore, the communique showed that Companies Income Tax (CIT), and Oil and Gas Royalty, Value Added Tax (VAT), and Excise Duty all recorded marginal to significant decreases, with Import Duty increasing only marginally while Petroleum Profit Tax (PPT) witnessed considerable increase.
A statement by Director of Information, Federal Ministry of Finance, Budget and National Planning, Hassan Dodo however indicated that $72.412 million is the current balance in the Excess Crude Account (ECA) as at February 18, 2021.
