May Allocation: FAAC Distributes ₦547.309bn To FG, States, LGs

• Silent on ECA balance

BY COBHAM NSA, ABUJA – The Federation Accounts Allocation Committee (FAAC) has distributed a total of ₦547.309 billion as monthly allocation to the three tiers of government for May 2020.

In a month that witnessed recognisable increase in the shared statutory revenue, FAAC said the ₦413.953 billion that came into the Federation coffers was about ₦43.542 billion more than the April 2020 figure of ₦370.411 billion.

The figures released late on Wednesday also showed that from the accrued amount, capturing revenues from Value Added Tax (VAT), Exchange Gain and Excess Bank Charges recoveries, the Federal Government got N219.799 billon; the States received N152.436 billion with the 774 Local Government councils carting home N114.095 billion.

Also, aside the Oil producing states that got N37.021 billion as their 13 per cent derivation from mineral revenue, ₦23.958 billion was distributed as cost of revenue collection; refund to FIRS, and allocation to North East Development Commission (NEDC).

In a communiqué issued at the end of FAAC monthly meeting, the gross revenue available from the VAT for May 2020 was ₦103.873 billion, compared to ₦94.498 billion that was shared in April. The amount represents an increase of ₦9.377 billion for the period.

From the VAT proceeds, the Communique indicated that Federal Government received ₦14.490 billion; the States got ₦48.301 billion; Local Government Councils ₦33.811 billon; with Cost of Collection; FIRS Refund; Allocation. to NEDC taking ₦7.271 billion.

Furthermore, of the ₦413.953 billion available for distribution as statutory revenue for the month, Federal Government smiled home with ₦191.580 billon, the 36 States received ₦97.172 billion, and the 774 Local Government Councils (LGCs) pocketed ₦74.915 billion.

The communiqué, which gave no information on the balance in the Excess Crude Account, however announced ₦33.599 billion as 13 percent derivation to oil mineral producing state while putting cost of collection for revenue agencies at ₦16.687 billion for the month under review.

Additionally, the FAAC statement indicated that appreciable upward movements were witnessed in revenue that accrued from Petroleum Profit Tax (PPT), Import Duty and Value Added Tax (VAT).

However, the good news did not extend to Companies Income Tax (CIT), Oil Royalty and Excise Duty that recorded a dip in their monthly income returns.