FAAC Suspends Paris Club Refund, Shares N739.965bn to FG, States, LGs

Ndubuisi Francis in Abuja
Following an agreement between the federal and state governments to suspend the controversial deductions of $418 million Paris Club refunds from states and local governments’ monthly allocations, the Federation Accounts Allocation Committee (FAAC) yesterday shared a total of N739.965 billion September revenue among the three tiers of government.

THISDAY had Monday reported that the FAAC meeting ran into a deadlock last Friday, due to disagreements between federal and state officials over deductions from the contentious $$418 million Paris Club refunds.

However, it was gathered that the federal government agreed to suspend deductions on the controversial Paris Club refunds, paving the way for the conclusion of the FAAC meeting yesterday.

The N739.965 billion shared for the month of September was higher than the N696.965 billion distributed in the preceding month of August, but less than the N760.717 billion for July.

A communique released after the virtual meeting indicated that the N739.965 billion total distributable revenue comprised distributable Statutory Revenue of N577.765 billion, distributable Value Added Tax (VAT) revenue of N159.096 billion and Exchange Gain of N3.104 billion.

Total deductions for cost of collection, statutory transfers, savings and refunds stood at N126.272 billion during the period.

From the total distributable revenue of N739.965 billion, the federal government received N301.311 billion, the stats received N220.272 billion, while the local government councils received N164.176 billion.

The sum of N54.206 billion was shared to the relevant States as 13 per cent derivation revenue.

The communique also showed that from the distributable statutory revenue of N577.765 billion available for the month, the federal government received N276.008 billion, states got N139.995 billion and the local government councils received N107.930 billion.
The sum of N53.831billion was given to the relevant states as 13 per cent derivation revenue.

In September 2021, the gross revenue available from the VAT was N170.850 billion, which was lower than the N178.509 billion available in the month of August by N7.659 billion.

The communique added that the sum of N4.920 billion allocation went to the North East Development Commission (NEDC) and N6.834 billion cost of revenue collection was deducted from the N170.850 billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N159.096billion.

From the N159.096billion distributable VAT revenue, the federal government received N23.864 billion, state governments received N79.548 billion while the local government councils received N55.684 billion.

In the month of September, Petroleum Profit Tax (PPT), Oil and Gas Royalties and Excise Duty increased significantly while Companies Income Tax (CIT), VAT and Import Duty decreased marginally.
The communique put the balance in the Excess Crude Account (ECA) at $60.860 million.