Revenue accruals to the Federation Accounts Allocation Committee (FAAC) slumped by N68.055 billion in October as the the three tiers of government shared the sum of N671.910 billion as federation allocation for the month compared to N739.965 billion in September.
Reasons for the huge disparity could be traced to a sharp dip in crude oil production in October, which fell to 1.35 million barrels per day as against 1.40 million bpd output recorded in September. Nigeria is currently battling insufficient funds as it needs to immediately reopen some oil fields forcefully shut down by COVID-19 last year.
According to the director, Information, Press and Public Relations, Office of the Accountant General of the Federation, Mr Henshaw Ogubike, the Committee held at its meeting yesterday at the end of National Council on Finance and Economic Development conference in Lagos.
From this amount, inclusive of Value Added Tax (VAT), Augmentations, Exchange Gain and Non-Oil Mineral Revenue, the Federal Government received N284.292 billion, the States received N209.838 billion, the Local Government Councils got N156.282 billion while the oil producing states received N21.498 billion as derivation (13% of Mineral Revenue).
The details were contained in a statement that was issued by the Ministry of Finance yesterday at the end of the meeting.
From the statement, the gross revenue available from the Value Added Tax (VAT) for October, 2021 was N166.284 billion as against N170.850 billion distributed in the preceding month of September, 2021, resulting in a decrease of N4.566 billion.
From that revenue available for sharing, the federal government got N23.227 billion, the States received N77.422 billion and Local Government Areas got N54.195 billion. Transfers and refunds received for the month is N4.789. The cost of revenue collection was put at N6.651 billion.
The distributed Statutory Revenue of N407.864 billion received for the month was lower than the N692.283 billion received for the previous month by N284.419 billion, from which the federal government received N180.551 billion, States: N91.578 billion, LGAs got N70.603 billion.
Host communities got 13 per cent mineral revenue of N21.118 billion, while transfers and refunds gulped N26.075 billion.
The statement that was issued by the deputy director of information in the Ministry, Oshundun Olajide said “the Augmentations of N100 billion as the Federal Government received N52.680 billion, State Governments got N26.720 billion, LGCs received N20.600 billion, derivation (13% of Mineral Revenue) got N0.000, Costs of Collection, Transfers and Refunds got N0.000 accordingly. Also the N50 billion from Non-Oil Revenue was shared as follows: Federal Government received N26.340 billion, State Governments got N13.360 billion, LGAs got N10.300 billion, Derivation (13 % of Mineral Revenue) received N0.000 billion, while Costs of Collection, Transfers and Refunds got N0.000 accordingly.”
Mr Olajide said Companies Income Tax (CIT), Petroleum Profit Tax (PPT), and oil and gas royalties decreased considerably. There was a slight decline in Value Added Tax (VAT), while Import and Excise Duty, increased marginally.
“The communique however disclosed that total revenue distributable for the current month inclusive of Gross Statutory Revenue of N363.849 billion, Value Added Tax (VAT) of N154.849 billion, and Exchange Gain of N3.217 billion, Augmentations of N100 billion and N50 billion from Non-Oil Mineral Revenue bringing the total distributable revenue to N671.910 billion,” he stated.
The balance of Excess Crude Account (ECA) as at today stands at $60.860 million.