FAAC shares N739.965bn to Federal Government, States, Local Councils for October 2021

*The Federation Account Allocation Committee says it has shared a sum of N739.965billion to the Federal, State Governments and Local Government Councils as  Federation revenue for October 2021

Isola Moses | ConsumerConnect

The Federation Account Allocation Committee (FAAC) has said it shared a sum of N739. 965 billion as Federation revenue for October 2021 to the Federal, State Governments and Local Government Councils (LGCs), which the government earned September this year.

ConsumerConnect reports the regulatory agency stated this in a communiqué issued at the end of the virtual meeting of the Federation Account Allocation Committee (FAAC) for October.

It said the N739.965 billion total Distributable Revenue comprised distributable Statutory Revenue of N577.765 billion, distributable Value-Added Tax (VAT) revenue of N159.096 billion and Exchange Gain of N3.104 billion.

In September 2021, N126.272 billion was the total deductions for cost of collection, statutory transfers, savings and refunds.

The balance in the Excess Crude Account (ECA) was $60.860 million.

The communiqué confirmed that from the total Distributable Revenue of N739.965 billion, the Federal Government received N301.311 billion, the State Governments received N220.272 billion, while the Local Government Councils received N164.176 billion.

The sum of N54.206 billion was shared to the relevant States as 13% derivation revenue.

The distributable Statutory Revenue of N577.765 billion was available for the month.

According to FAAC, from this amount, the Federal Government received N276.008 billion, the State Governments received N139.995 billion; while the Local Government Councils received N107.930 billion.

The sum of N53.831billion was given to the oil producing states as 13% derivation revenue.

In September 2021, the gross revenue available from VAT was N170.850 billion, the Committee stated.

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 VAT revenue, resulting in the distributable VAT revenue of N159.096billion.

From the N159.096billion distributable VAT revenue, the Federal Government received N23.864 billion, the State Governments received N79.548 billion and the Local Government Councils received N55.684 billion.

According to FAAC, the Federal Government received N1.438 billion from the Exchange Gain revenue of N3.104 billion.

The State Governments receive N0.729 billion, the Local Government Councils received N0.562 billion, while N0.375 billion was shared to the relevant States as 13% derivation revenue.

The communiqué also noted that in September 2021, Petroleum Profit Tax (PPT), Oil and Gas Royalties and Excise Duty increased significantly, while Companies Income Tax (CIT), VAT and Import Duty decreased marginally.

The Federal Government reportedly rescinded its earlier decision to deduct the controversial $418 million from the funds from states and local governments’ allocation in order to pay consultants who claimed that they assisted the two tiers of government in securing Paris Club over-deductions from the Federal Government.

However, sources at FAAC meeting Thursday said that the decision to suspend the deductions was to avoid a delay in the sharing of the monthly revenue which could lead to the failure of the three tiers of government in meeting their financial obligations, including the payment of workers’ salaries.

Earlier last week, the meeting had agreed on all indices and sharing concluded, but for the issue of the deductions from the allocations of the states and the LGs, which brought the stalemate, according to report.

It was gathered that the suspension of the deductions was to enable the parties “sort things out” before a conclusive action would be taken at subsequent FAAC meetings.