FAAC distributes N696.965bn to Federal Government, States, LGAs for August

*Nigeria’s Federation Accounts Allocation Committee (FAAC) has said it shared N696.965billion total distributable revenue to three tires of the government, as Federal Government received N289.257billion, 36 states N217.183billion, and local government councils N161.541billion

Alexander Davis | ConsumerConnect

With an obvious decrease in the distributable revenue for last month, the Federation Accounts Allocation Committee (FAAC) has shared a total of N696.965 billion to the three tiers of government, the Federal, States and Local Council Areas in Nigeria for August 2021.

ConsumerConnect reports the shared amount was N63.752billion less than N760.717 billion shared in July this year, though the agency did not offer any explanation for the decline in the distributable revenue for the last month.

FAAC in a communiqué issued at the end of its virtual meeting of Wednesday, September 22, 2021, said that N696.965billion total distributable revenue comprised distributable statutory revenue of N477.504billion; distributable Value Added Tax (VAT) revenue of N166.228 billion, recovered Exchange Gain of N2.830 billion, recovered Excess Bank Charges of N0.403billion and N50billion from non-oil revenue.

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

From the total distributable revenue of N696.965billion, FAAC noted the Federal Government received N289.257billion; states N217.183billion, and the local government councils N161.541 billion.

The sum of N28.984 billion was shared to the relevant states as 13 percent derivation revenue.

According to the Committee, the gross revenue available from VAT August 2021 was N178.509 billion, higher than the N151.134billion available in the month of July by N27.375 billion.

It further disclosed the sum of N5.141billion was allocated to the North East Development Commission (NEDC) and N7.140billion cost of revenue collection was deducted from the N178.509billion gross VAT revenue, resulting in the distributable VAT revenue of N166.228billion.

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

The communiqué also said that the Federal Government received N1.334billion from the Exchange Gain revenue of N2.830billion while the states received N0.677billion.

It stated the local government councils as well received N0.522billion and N0.297billion was given to the relevant states as 13 percent derivation revenue.

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

FAAC said from the N50billion non-oil revenue, the Federal Government received N26.340billion; state governments – N13.360 billion, and the local government councils received N10.300billion.

According to the Committee, a highlight of the month of August 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, stood at $60.857 million.

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