FAAC Shares N695bn February Revenue to FG, States, LGs

Ndubuisi Francis

The Federation Accounts Allocation Committee (FAAC) yesterday shared a total sum of N695.033 billion to the three tiers of government, as allocation for the month of February, 2022.

A communique issued after a virtual meeting of the Committee revealed that from the amount, inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Non Mineral Revenues and Excess Bank Charges, the federal government received N236.177 billion, the states received N190.007 billion, while the local government councils got N140.612 billion.

On the other hand, the oil producing states received N23.750 billion as 13 per cent derivation (mineral revenue) while cost of collection and transfer refunds received N23.989 billion and N80.498 billion respectively.

The communiqué indicated that the gross revenue available from the VAT for February, 2022 was N177.873 billion as against N191.222 billion distributed in the preceding month of January 2022, resulting in a decrease of N13.349 billion. The distribution was as follows: The federal government got N24.845 billion, the states received N82.818 billion, local government councils got N57.972 billion, while cost of collection to the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS) got N7.115 billion.

The Allocation to the Niger Delta Development Commission (NEDC) project received N5.123 billion.

The distributed Statutory Revenue of N429.681 billion, received for the month was higher than the sum of N396.432 billion in the previous month by N33.249 billion, from which the federal government was allocated the sum of N165.248 billion, states got N83.816 billion, local councils got N64.618 billion while 13 per cent derivation got N23.750 billion.

The cost of collection received N16.874, while transfers and refund accounted for N75.375 billion.

The communiqué also revealed that Petroleum Profit Tax (PPT) increased significantly, while oil and gas royalties increased marginally.

However, Import and Excise Duties, Companies Income Tax (CIT) and Value Added Tax (VAT) recorded considerable decreases.

It was further disclosed that total revenue distributable for the current month was drawn from Statutory Revenue of N429.641billion, Value Added Tax (VAT) of N177.873 billion, Excess Bank Charges Recovered of N7.479 and Non Mineral Revenues of N80 billion.

The balance in the Excess Crude Account as at  March 22, 2022 stood at $35.371million.