FAAC: NNPC Remits N123bn After 18 Months Of Non-remittance

The Nigerian National Petroleum Company (NNPC) Limited said it has remitted N123 billion to the federation account for the month of June 2023.

This is the first time in 18 months that the NNPC is remitting revenue to the federation account.

This is as the Federation Allocation Account Committee (FAAC) said it distributed a total sum of N907.054 billion to the three tiers of government as allocation for June 2023.

NNPC chief financial officer, Umar Ajiya, in a note, said the N123 billion remitted by the national oil firm comprised of

N81 billion as monthly interim dividend and N42 billion as 40 per cent production sharing contract (PSC) profit oil; in addition to compliance on payment of royalties and taxes, in line with the provisions of the Petroleum industry Act (PIA) 2021.

The NNPC has been in a running battle with the FAAC over the former’s non-remittance of profit accruing from the sale of crude oil to the federation account.

Month after month, the NNPC did not remit any revenues to the federation account, citing  value shortfall resulting from the difference between the landing cost and ex-coastal price of PMS (petrol) or  subsidy payment as responsible for the non-remittance.

Meanwhile, FAAC said it shared a total sum of N907.054 billion June 2023 Federation Account Revenue to the federal government, states and local government councils.

This was contained in a communiqué issued at the end of the Federation Account Allocation Committee (FAAC) meeting for July 2023.

The meeting was chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein.

The N907.054 billion total distributable revenue comprised distributable statutory revenue of N301.501 billion, distributable Value Added Tax (VAT) revenue of N273.225 billion, Electronic Money Transfer Levy (EMTL) revenue of N11.436 billion and Exchange Difference revenue of N320.892 billion.

In June 2023, the total deductions for cost of collection was N73.235 billion and total deductions for savings, transfers and refunds was N979.078 billion.

The balance in the Excess Crude Account (ECA) was $473,754.57

The communiqué stated that from the total distributable revenue of N907.054 billion; the Federal Government received N345.564 billion, the State Governments received N295.948 billion and the Local Government Councils received N218.064 billion. A total sum of N47.478 billion was shared to the relevant States as 13 per cent derivation revenue.

Gross statutory revenue of N1,152.921 billion was received for the month of June 2023. This was higher than the sum of N701.787 billion received in the previous month by N451.134 billion.  Q

From the N301.501 billion distributable statutory revenue, the Federal Government received N146.710 billion, the State Governments received N74.413 billion and the Local Government Councils received N57.370 billion. The sum of N23.008 billion was shared to the relevant States as 13% derivation revenue.

For the month of June 2023, the gross revenue available from the Value Added Tax (VAT) was N293.411 billion. This was higher than the N270.197 billion available in the month of May 2023 by N23.214 billion.

The federal government received N40.984 billion, the State Governments received N136.613 billion and the Local Government Councils received N95.629 billion from the N273.225 billion distributable Value Added Tax (VAT) revenue.

The N11.436 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the federal government received N1.715 billion, the State Governments received N5.718 billion and the Local Government Councils received N4.003 billion.

From the N320.892 billion Exchange Difference revenue, the Federal Government received N156.155 billion, the State Governments received N79.204 billion, the Local Government Councils received N61.063 billion and the sum of N24.470 billion was shared to the relevant States as 13 percent mineral revenue.

According to the communiqué, in the month of June 2023, Companies Income Tax (CIT) recorded tremendous increase. Import and Excise Duties, Value Added Tax (VAT), Oil and Gas Royalties increased significantly, while Petroleum Profit Tax (PPT) and Electronic Money Transfer Levy (EMTL) decreased considerably.