New Telegraph

FAAC shares N739.965bn to FG, states, LGAs

After an initial stalemate, the Federation Accounts Allocation Committee (FAAC) shared a total of N739.965 billion being revenue allocation to three tires of governments for September 2021. The FAAC meeting ended in deadlock last Friday as states and local governments resisted the commencement of deductions in relation to the $418 million judgement debt for “consultancy services,” with regard to the Paris Club Loans refund. A re-convened FAAC session yesterday and sum total of N739.965 billion distributable revenue comprising statutory revenue of N577.765 billion, Value Added Tax (VAT) of N159.096 billion and exchange gain of N3.104 billion was approved for sharing. In September 2021, the sum of N126.272 billion was the total deductions for cost of collection, statutory transfers, savings and refunds.

A communiqué confirmed that from the total Distributable Revenue of N739.965 billion, the Federal Government received N301.311 billion, the state government, N220.272 billion, and local government councils, N164.176 billion. The sum of N54.206 billion was shared to oil producing states as 13 per cent derivation revenue. The distributable Statutory Revenue of N577.765 billion was available for the month. From this amount, the Federal Government received N276.008 billion, states, N139.995 billion and local government councils, N107.930 billion. A sum of N53.831billion was given to the relevant states as 13 per cent derivation revenue.

In September 2021, the gross revenue available from the Value Added Tax (VAT) was N170.850 billion. This was lower than the N178.509 billion available in the month of August by N7.659billion. The sum of N4.920 billion allocation to NEDC and N6.834 billion cost of revenue collection were deducted from the N170.850 billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N159.096billion. F rom the N159.096billion distributable Value Added Tax (VAT) revenue, the federal government received N23.864 billion, state government received N79.548 billion and the local government councils, N55.684 billion. The Federal Government received N1.438 billion from the Exchange Gain revenue of N3.104 billion.

States, N0.729 billion, local government councils, N0.562 billion while N0.375 billion was shared to oil producing states as 13 per cent derivation revenue. In September Petroleum Profit Tax (PPT), oil and gas royalties and Excise Duty increased significantly while Company Income Tax (CIT), Value Added Tax (VAT) and Import Duty decreased marginally. The balance in the Excess Crude Account (ECA) stood at $60.860 million.

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