How Federal Government, States, Local Councils share N760.717bn for July 2021

*Office of the Accountant-General of the Federation says from the total revenue, the Federal Government of Nigeria received N321.226billion, state governments got N222.514billion, while the local government councils received N166.562billion July this year

Alexander Davis | ConsumerConnect

Nigeria’s Federation Accounts Allocation Committee (FAAC) has shared a total of N760.717 billion Federation Account revenue to the Federal, States, and Local Governments for July 2021.

The Committee disclosed this in a statement issued Friday, August 20 at the end of the virtual meeting of the FAAC for this month.

The statement revealed the revenue comprised distributable statutory revenue of N617.705 billion, distributable Value Added Tax (VAT) revenue of N140.555 billion, and exchange gain of N2.457 billion.

Henshaw Ogubike, Spokesperson for the Office of the Accountant-General of the Federation (OAGF), stated that in “July 2021, the sum of N63.501billion was the total deductions for the cost of collection, statutory transfers, and refunds.

“The balance in the Excess Crude Account (ECA) was $60.855 million.”

Ogubike also noted from the total revenue, the Federal Government received N321.226 billion, state governments got N222.514 billion, and the sum of N166.562 billion was distributed to the local governments.

The sum of N50.415 billion was shared to the relevant states as 13 percent derivation revenue while the distributable statutory revenue of N617.705 billion was available for the month.

From the distributable statutory revenue, the statement said that the Federal Government received N299.004 billion, state governments received N151.659 billion, and local governments got N116.922 billion.

The sum of N50.120 billion was given to the relevant States as 13 per cent derivation revenue.

Ogubike further said: “In the month of July 2021, the gross revenue available from the Value Added Tax (VAT) was N151.134 billion.

“This was lower than the N154.465 billion available in the month of June by N3.331billion.

“The sum of N4.534 billion allocation to NEDC and N6.045 billion cost of revenue collection were deducted from the N151.134 billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N140.555billion.”

From the N140.555 billion distributable VAT revenue, the Federal Government received N21.083 billion, state governments received N70.278 billion, and local governments got N49.194 billion.

Government to review vertical revenue allocation formula

Meanwhile, the Federal Government has announced that it is set to review the vertical revenue allocation formula it currently operates towards the three tiers of government in the country.

Alhaji Modu Aji, Commissioner, Revenue Mobilisation and Fiscal Allocation Commission (RMFAC), disclosed this development at an interactive session with officials of Yobe State Government Friday, August 20, 2021, in Damaturu, Yobe State capital, says agency report.

The RMFAC Commissioner stated: “The current revenue allocation formula stands at 52.68 per cent for the Federal Government, that is including special fund for the FCT; Ecological, Stabiliation and Natural Resources Development Funds.

“You then have 26.72 percent for the states and 20.6 percent for Local Government Areas.

“This is the vertical arrangement at the moment and it has been the arrangement since 1992.”

The model, he stated, needs to be reviewed citing other unsuccessful attempts due to change of governments, absence of the National Assembly, among others.”

The decision on imminent revenue allocation remodelling reportedly, was informed by a Federal High Court, in Rivers State, which ruled that Value Added Tax collection should go to states.

The Rivers House of Assembly has since ratified this, according to report.

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