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FG, States, LG shares N647.35bn FAAC in January

By Akilani Abdullah,

The Federal Ministry of Finance, Budget and National Planning, has revealed that Federal, State, and Local Governments shared N647.35 billion, from the Federation Account, for the month of January 2020, an amount which was 9.63 percent lower than N716. 29 billion the governments shared in December 2019.

According to the ministry, reduction in income was due to low revenue generated by Nigerian National Petroleum Corporation (NNPC) and the Federal Inland Revenue Service (FIRS) for the month in view.

The ministry stated that both bodies recorded revenue shortfall due to a reduction in economic activities which usually occurred in January, adding that revenue generation was expected to improve in the coming months.

Federal Ministry of Finance, Budget and National Planning, Permanent Secretary, Mahmoud Isa-Dutse, said that all allocations were made in keeping with constitutional provisions.

Speaking to newsmen, at the end of Federation Account Allocation Committee (FAAC) meeting held on Wednesday, in Lagos,  Isa-Dutse noted that the N647.35 billion comprised Statutory Revenue, Value Added Tax (VAT), Exchange Gain, Non-Oil Revenue and Excess Bank Charges recovered.

He added that the Excess Crude Account (ECA) balance had amounted to $71.81 million as at Feb. 19, 2020, which he said pointed to better months, with higher generated income amounts, ahead.

The permanent secretary disclosed that a communique had been released by FAAC which gave full details of distribution among the three tiers of government, and stated that this was done to maintain an air of transparency in government transactions, as championed by the Muhammadu Buhari led government.

The communique stated that from gross statutory revenue of N525.25 billion, federal government had received N243.70 billion, state governments received N123.61 billion and local government councils received N95.29 billion.

“So the Oil Producing States received N46.07 billion as 13 percent derivation revenue and the Revenue Collecting Agencies received N16.56 billion as cost of collection,”

“From Value Added Tax (VAT) revenue of N104.75, the federal government received N14.61 billion and the state governments received N48.71 billion while local government councils received N34.09 billion and revenue generating agencies received N7.33 billion as cost of revenue collection”.

In addition, the report said that N1.044 billion from Exchange Gain revenue had been shared, with federal government receiving N0.48 billion, state governments receiving N0.24 billion, local government councils receiving N0.19 billion and oil-producing states receiving N0.12 billion as 13% derivation revenue.

It continued, stating that non-oil revenue of N16.29 billion had been shared among the government levels, FG received N8.58 billion, state governments received N4.35 billion, while local governments received N3.35 billion.

The communique confirmed that for the month of January 2020, there was a significant increase in Import Duty revenue while Companies Income Tax (CIT), Value Added Tax (VAT), Oil and Gas Royalties and Petroleum Profit Tax (PPT) recorded decreases.

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