Home Nigeria September FAAC Allocation Rises by N27.098bn as FG, States and LGAs Share...

September FAAC Allocation Rises by N27.098bn as FG, States and LGAs Share N700bn

53
0

FAAC: FG, states, LGAs share N673bn for AugustBy Uche Amunike

The Federation Account Allocation Committee (FAAC) has shared a total of N700.235 billion between the three tiers of government, namely FG, States and Local Government Areas as the FAAC Allocation for the month of September, notably higher than that of the month of August by N27.098 billion.

According to a communique issued by the committee after its meeting in Abuja, the Director (Information/Press), Ministry of Finance, Budget and National Planning, Phil Abiamuwe Mowete stated that the September FAAC Allocation of N700.235 billion included Gross Statutory Revenue, Electronic Money Transfer Levy (EMTL) of N502.135 billion, N189.928 billion, as well as N8.172 billion respectively, including Value Added Tax (VAT).

The FAAC allocation to the federal government was N262.636 billion. States received a total of N217.191 billion, while their Local Government counterparts received a total of N160.416 billion. As for the oil producing states, they were given N59.992 billion as 13% Mineral Revenue under the Derivation Principle.

The available Gross Revenue from the September Value Added Tax was N189.928 billion, thereby representing a reduction when compared with the month of August.

According to the statement: ‘The

Gross Statutory Revenue of N502.135 billion distributed was higher than the sum received in the previous month, from which the Federal Government was allocated the sum of N232.921 billion, States got N118.141billion, LGCs got N91.081billion, and Oil Derivation (13% Mineral Revenue) got N59.992 billion.’

‘Also, N8.172 billion of Electronic Money Transfer Levy (EMTL) distributable revenue was shared to the three (3) tiers of government as follows; the federal government received N1.226 billion, States got N4.086 billion, local government councils received N2.860 billion.’

The statement also showed that the N189.928 billion VAT revenue for the month of September was also shared. The FAAC allocation to the federal government was N28.489 billion, states received N94.964 billion, while the Local Government Areas were allocated N66.475 billion.

Royalties from Oil and Gas witnessed a tremendous increase, while Petroleum Profit Tax (PPT) and Excise Duty recorded marginal increases on their part. While Value Added Tax (VAT) , Import Duty and Companies Income Tax (CIT) suffered considerable decrease, however, the balance in the Excess Crude Account (ECA), as at October 26, 2022 remained $472,513.64.

Meanwhile, findings revealed that the three tiers of government have been plagued with revenue challenges because of several reasons like the withdrawal of major International Oil Companies (OIC) from the country’s onshore oil fields, including production shutdowns caused by the breakdown of old equipment and menace of vandals and oil thieves. There is also the problem of failure of the Nigerian National Petroleum Company Limited (NNPC) to remit money into the federation account since January 2022.

During the monthly meeting the corporation held with FAAC on Friday, September 23, they also presented that they deducted another N525.71 billion as subsidy on petrol in August 2022, making it the 8th consecutive month that the NNPC would not be making payments into the federation account.

QUICK SHARE:

LEAVE A REPLY

Please enter your comment!
Please enter your name here