
FG, states & LGs share N604.004 bn
A last-minute decision last night by members of Federation Accounts Allocation Committee (FAAC) approving over N99 billion from Stabilisation Account and other sources saved what would have been a dire situation for three tiers of government as October revenue fell short of threshold. Available total revenue distributable for the current month was augmented with the sums of N72 billion, N7.392 billion from Forex Equalization and N20 billion from the Stabilization Account respectively, to bring total revenue shared to three tiers of governments to N604.004 billion.
The FAAC meeting, which began at about 5p.m. yesterday, at the Auditorium of Federal Ministry of Finance, Budget and National Planning, dragged beyond 9p.m. with FAAC members juggling options to tackle revenue shortfall. The session was presided over by Permanent Secretary, Federal Ministry of Finance, Budget and National Planning, Alhaji Aliyu Ahmed. The sum of N604.004 billion shared was inclusive of cost by the Nigeria Customs Service, Department of Petroleum Resources (DPR) and and Federal Inland Revenue Service (FIRS). Of the amount, Federal Government received N220.751 billion, states received N161.825 billion while local governments got N120.588 billion.
The oil-producing states received N31.902 billion as derivation (13% of mineral revenue). Cost of collection/transfer and refund was N48.939 billion. Gross revenue available from the Value Added Tax (VAT) during the month under review stood at N126.463 billion as against N141.858 billion distributed in the preceding month of September, 2020, resulting in a decrease of N15.395 billion.
A breakdown of distribution showed Federal Government got N17.642 billion, states N58.805 billion; Local Government Councils got N41.167 billion, while cost of collection/ transfer and refund was N5.059 billion and allocation to NEDC project received N3.794 billion.
The FAAC breakdown showed distributed statutory revenue of N378.148 billion received for the month was higher than the N341.501 billion received for the previous month by N36.647 billion. Of the amount, Federal Government received N166.195 billon, states got N84.296 billion, local goverments got N64.989 billion.
The fund for derivation (13% Mineral Revenue) was N21.581 billion. Cost of collection/ transfer and refund was N40.086 billion. The balance in the Excess Crude Account as at 18th November stands at $72.409 million.