Thursday, 23 September 2021 05:53

FAAC allocation for August dipped by N63.75bn. This is how the 3 tiers shared the reduced revenues

Rate this item
(1 Vote)

Federation Accounts Allocation Committee (FAAC) yesterday shared a total of N696.965 billion to the three tiers of government for August 2021.

The amount was N63.752 billion less than the N760.717 billion shared in July 2021.

No explanation was given by FAAC for the decrease in the dstributable revenue for August.

According to a communiqué issued at the end of the virtual meeting of FAAC, the N696.965 billion total distributable revenue comprised distributable statutory revenue of N477.504 billion; distributable Value Added Tax (VAT) revenue of N166.228 billion, recovered Exchange Gain of N2.830 billion, recovered Excess Bank Charges of N0.403 billion and N50 billion from non-oil revenue.

N72.295 billion was the total deductions for cost of collection, statutory transfers and refunds.

The communiqué stated that from the total distributable revenue of N696.965 billion, federal government received N289.257 billion; states– N217.183 billion, and local government councils, N161.541 billion.

N28.984 billion was shared to the relevant states as 13 per cent derivation revenue.

In August 2021, the gross revenue available from VAT was N178.509 billion, higher than the N151.134 billion available in July by N27.375 billion.

For August, N5.141 billion was allocated to the North East Development Commission (NEDC) and N7.140 billion cost of revenue collection was deducted from the N178.509 billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N166.228 billion.

From the N166.228 billion distributable VAT revenue, federal government received N24.934 billion, state governments got N83.114 billion and the local government councils received N58.180 billion.

Similarly, federal government received N1.334 billion from the Exchange Gain revenue of N2.830 billion while states received N0.677 billion.

Local government councils received N0.522 billion and N0.297 billion was given to the relevant states as 13 per cent derivation revenue.

The excess bank charges recovered was N0.403 billion. Federal government received N0.212 billion, state governments received N0.108 billion, and local government councils received N0.083 billion.

From the N50 billion non-oil revenue, federal government received N26.340 billion; state governments– N13.360 billion, and the local government councils received N10.300 billion.

A highlight of the August revenue profile is the significant increase in VAT and import duty while Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties and Excise Duty recorded decreases.

Balance in the Excess Crude Account (ECA) as of September 21, 2021 was $60.857 million.