Thursday, 20 February 2020 04:24

FAAC: Revenue declines 10 percent as FG, states, LGs share N647bn for January

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Nigeria’s federal, states and local governments on Wednesday shared a total of N647.35 billion for January as the Federation Account Allocation Committee (FAAC) meeting ended in Lagos.

The N647.35 billion shared is 9.63 per cent lower than the N716.29 billion shared in December 2019.

Mr Mahmoud Isa-Dutse, Permanent Secretary, Federal Ministry of Finance, Budget and National Planning, made the announcement while briefing journalists after the meeting.

He said the reduction in the allocation was due to what was provided by Nigerian National Petroleum Corporation (NNPC) and Federal Inland Revenue Service (FIRS) for the month.

Isa-Dutse said FIRS had explained that the shortfall of revenue was due to the reduction in economic activities which usually occurs in January, adding that revenue generation would improve as the months go by.

He said the N647.35 billion comprised Statutory Revenue, Value Added Tax (VAT), Exchange Gain, Non-Oil Revenue and Excess Bank Charges recovered.

The permanent secretary said as at February 19, the balance in the Excess Crude Account (ECA) was $71.81 million.

Isa-Dutse said: “Gross statutory revenue for January 2020 was N525.25 billion. This is lower than the N600.31 billion received in the previous month by N75.06 billion.

“For January 2020, the gross revenue available from Value Added Tax (VAT) was N104.75 billion as against N114.80 billion in the previous month, resulting in a decrease of N10.04 billion.

“Exchange Gain yielded a total revenue of N1.04 billion, while the Non-Oil revenue was N16.29 billion.”

He said from the N647. 35 billion, federal government got N267.38 billion, state governments received N176.92 billion, and local government councils received N132.94 billion.

Isa-Dutse said oil-producing states received N46.19 billion as 13 per cent derivation revenue and revenue-generating agencies received N23.90 billion as cost of revenue collection.

According to a communique released by FAAC, a breakdown of the distribution showed that from the gross statutory revenue of N525.25 billion, federal government received N243.70 billion, state governments received N123.61 billion and local government councils received N95.29 billion.

“Also, Oil Producing States received N46.07 billion as 13 per cent derivation revenue and the Revenue Collecting Agencies received N16.56 billion as cost of collection.

“From the Value Added Tax (VAT) revenue of N104.75, federal government received N14.61 billion and state governments received N48.71 billion.

“Local government councils received N34.09 billion and the revenue-generating agencies received N7.33 billion as cost of revenue collection.

“From the Exchange Gain revenue of N1.044 billion, federal government received N0.48 billion, state governments received N0.24 billion, local government councils got N0.19 billion and oil producing states got N0.12 billion as 13 per cent derivation revenue.

“From the Non-Oil revenue of N16.29 billion, federal government got N8.58 billion, State Governments got N4.35 billion, local government councils got N3.35 billion,” it said.

The communique confirmed that for January 2020, there was a significant increase in Import Duty revenue while Companies Income Tax (CIT), Value Added Tax (VAT), Oil and Gas Royalties and Petroleum Profit Tax (PPT) recorded decreases.