Federal Govt, States, Local Councils share N722.677bn revenue for February amid drop in VAT earnings

*Nigeria’s Federal Ministry of Finance, Budget and National Planning says the gross revenue available from VAT February 2023 was N240.799 billion, compared to N250.009 billion recorded January this year

Isola Moses | ConsumerConnect

The Federation Account Allocation Committee (FAAC), in Nigeria, Thursday, March 23, 2023 disclosed the regulatory agency shared a total sum of N722.677 billion revenue to the Federal Government, states and local government councils (LGCs) for February this year.

FAAC, in a communiqué issued at the end of its meeting for March stated the N722.677 billion total distributable revenue comprised distributable statutory revenue of N366.800 billion, distributable Value Added Tax (VAT) revenue of N224.232 billion, Electronic Money Transfer Levy (EMTL) of N11.645 billion and N120.000 billion Augmentation from Forex Equalisation Account.

Bawa Mokwa, Director (Press and Public Relations), Ministry of Finance, Budget and National Planning, in a statement said in February, the total deductions for cost of collection was N27.449 billion, while total deductions for transfers, savings, recoveries and refunds was N109.909 billion.

Mokwa stated from the total distributable revenue of N722.677 billion, the federal government received N269.063 billion, the states received N236.464 billion, while the local government councils received N173.936 billion.

The sum of N43.214 billion was shared to the relevant states as 13 per cent derivation revenue, the Director noted.

Gross statutory revenue of N487.106 billion was received for the month of February, an amount that fell short of the N653.704 billion received in the previous month by N166.598 billion.

From the N366.800 billion distributable statutory revenue, the Federal Government received N178.683 billion, states received N90.630 billion and the local governments  received N69.872 billion.

The sum of N27.614 billion was shared to the relevant states as 13 percent derivation revenue.

The Director of Press and Public Relations of the Ministry also stated that for February 2023, the gross revenue available from VAT was N240.799 billion, which was lower than the N250.009 billion available in the preceding month of January by N9.210 billion.

From this amount, the Federal Government received N33.635 billion, the state governments received N112.116 billion, while the local government councils received N78.481 billion from the N224.232 billion distributable VAT revenue.

Also, the N11.645 billion Electronic Money Transfer Levy (EMTL) was distributed with the federal government getting N1.747 billion, states received N5.822 billion, and the local government councils received N4.076 billion.

From the N120 billion Augmentation, the Federal Government received N54.998 billion, the state governments received N27.896  billion, the local government councils received N21.506 billion and a total sum of N15.600 billion was shared to the relevant states as 13 percent mineral revenue.

According to the statement, in the month of February, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Import and Excise Duties all decreased significantly, while VAT and EMTL decreased marginally.

The balance in the Excess Crude Account (ECA) stood at $473,754.57 as of March 22, 2023, according to the statement.