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FAAC Shares N722.7bn February Revenue To FG, States, LGs
The Federation Account Allocation Committee (FAAC) has shared N722.677 billion February 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 FAAC meeting for March 2023, according to a statement by its Director, Press and Public Relations, Bawa S. Mokwa.
“The N722.677 billion total distributable revenue comprised distributable statutory revenue of N366.800 billion, distributable Value Added Tax (VAT) revenue of N224.232 billion, Electronic Money Transfer Levy(EMTL) of N11.645 billion and N120.000 billion Augmentation from Forex Equalisation Account,” the FAAC said.
According to the statement, in February 2023, the total deductions for cost of collection was N27.449 billion and total deductions for transfers, savings, recoveries and refunds was N109.909 billion.
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“The balance in the Excess Crude Account (ECA) was $473,754.57,” the committee added.
“The communiqué confirmed that from the total distributable revenue of N722.677 billion; the Federal Government received N269.063 billion, the State Governments received N236.464 billion and the Local Government Councils received N173.936 billion. A total sum of N43.214 billion was shared to the relevant States as 13% derivation revenue.
“Gross statutory revenue of N487.106 billion was received for the month of February 2023. This was lower than the sum of N653.704 billion received in the previous month by N166.598 billion.”
See the full statement below:
OFFICE OF THE ACCOUNTANT GENERAL OF THE FEDERATION
Press Release
Wednesday, March 22, 2023
FAAC SHARES N722.677 BILLION FEBRUARY 2023 REVENUE TO FG, STATES AND LGCs
The Federation Account Allocation Committee (FAAC) has shared a total sum of N722.677 billion February 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 March 2023.
The N722.677 billion total distributable revenue comprised distributable statutory revenue of N366.800 billion, distributable Value Added Tax (VAT) revenue of N224.232 billion, Electronic Money Transfer Levy(EMTL) of N11.645 billion and N120.000 billion Augmentation from Forex Equalisation Account.
In February 2023,, the total deductions for cost of collection was N27.449 billion and total deductions for transfers, savings, recoveries and refunds was N109.909 billion.
The balance in the Excess Crude Account (ECA) was $473,754.57
The communiqué confirmed that from the total distributable revenue of N722.677 billion; the Federal Government received N269.063 billion, the State Governments received N236.464 billion and the Local Government Councils received N173.936 billion. A total sum of N43.214 billion was shared to the relevant States as 13% derivation revenue.
Gross statutory revenue of N487.106 billion was received for the month of February 2023. This was lower than the sum of N653.704 billion received in the previous month by N166.598 billion.
From the N366.800 billion distributable statutory revenue, the Federal Government received N178.683 billion, the State Governments received N90.630 billion and the Local Government Councils received N69.872 billion. The sum of N27.614 billion was shared to the relevant States as 13% derivation revenue.
For the month of February 2023,, the gross revenue available from the Value Added Tax (VAT) was N240.799 billion This was lower than the N250.009 billion available in the month of January 2023 by N9.210 billion.
The Federal Government received N33.635 billion, the State Governments received N112.116 billion and the Local Government Councils received N78.481 billion from the N224.232 billion distributable Value Added Tax (VAT) revenue.
The N11.645 billion Electronic Money Transfer Levy (EMTL) was distributed as follows: the Federal Government received N1.747 billion, the State Governments received N5.822 billion, the Local Government Councils received N4.076 billion.
From the N120.000 billion Augmentation, the Federal Government received N54.998 billion, the State Governments received N27.896 billion, the Local Government Councils received N21.506 billion and a total sum of N15.600 billion was shared to the relevant Sates as 13% mineral revenue.
According to the communiqué, in the month of February 2023, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Import and Excise Duties all decreased significantly while Value Added Tax (VAT) and Electronic Money Transfer Levy (EMTL) decreased marginally.
Bawa S. Mokwa
Director (Press and Public Relations)
March 22, 2023
Taraba to reduce dependence on FAAC
By Danzumi Ishaku, Jalingo.
To achieve the 2023 budget, in Taraba state, the government of Taraba said it has stepped up her attempts in the mobilisation of revenue to reduce dependence on the Federal Account Allocation Committee (FAAC).
The commissioner of Budget and Economic Planning, Solomon B. Elisha, stated this on Tuesday while briefing media in Jalingo the headquarters of the state capital. The state approved budget under the administration of Governor Ishaku for 2023, also debunked the allegations that the governor has indebted the state to the tune of over N200 Billions.
The commissioner whom Daybreak news noticed could not make public the present debt status of the state, urged the people to disregard the claim that Ishaku has catapulted the state debt profile to the height.
Alleging that the allegations are emanating from the opposition’s coffers, the 2023 approved budget of the state, as stated by him, is based on some macroeconomic assumptions among which includes the “United States Dollar exchange rate to N435.57.”
Others, as listed out by him, include the “International oil price benchmark of $70.00 per barrel, National Inflation rate of 17.16% and GDP growth of 3.75%” to mention but just a few.
Hon. Solomon Elisha noted that the timely passage of the Appropriation Law 2023 and assent into law is vital for the completion of government critical ongoing projects and transition to new administration in the state.
The budget, according to him “will be achieved through “improving revenue mobilisation through blocking of leakages and emphasising new sources.”
Other measures which he believed would be put in place to achieve the revenue projections of the budget, are via the Creation of fiscal space for infrastructural development, ensuring sustainable deficit and debt levels, as well as Strengthen, Monitoring and Evaluation.
Claiming that the incumbent state governor has successfully lifted Tarabans out of the dungeon of poverty, said the achievement was made possible by the human face policies put in place by Ishaku.
February 1, 2023
FG, States, LGAs Share N700.235bn For September
The Federation Account Allocation Committee (FAAC) has shared N700.235 billion to the three tiers of government as federation allocation for September, 2022.
From this stated amount, inclusive of Gross Statutory Revenue, Value Added Tax (VAT), and Electonic Money Transfer Levy (EMTL), the Federal Government received N262.636 billion, the States received N217.191 billion, the Local Government Councils got N160.416 billion while oil producing States received N59.992 billion as derivation from 13 percent mineral revenue.
The communiqué by FAAC at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for September 2022 was N189.928 billion which is a decrease from what was distributed in the preceding month.
The VAT distribution showed that the Federal Government got N28.489 billion, the States received N94.964 billion and the Local Government Councils got N66.475 billion.
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 percent Mineral Revenue) got N59.992 billion.
Also, N8.172 billion of Electronic Money Transfer Levy (EMTL) distributable revenue was shared to the three 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 communiqué further revealed that Oil and Gas Royalties increased tremendously, while Petroleum Profit Tax (PPT) and Excise Duty recorded marginal increases. However, Value Added Tax (VAT), Import Duty and Companies Income Tax (CIT) decreased considerably.
It was further disclosed that total revenue distributable for the month of September was drawn from Statutory Revenue of N502.135 billion, Value Added Tax (VAT) of N189.928 billion and N8.172 billion drawn from Electronic Money Transfer Levy (EMTL), bringing the total distributable for the month to N700.235 billion.
However, the balance in the Excess Crude Account (ECA), as at 26th October 2022 stands at $472,513.64.
October 27, 2022
NNPC to deduct N672bn as Fuel Subsidy hits N1.35tn in four months
The Nigerian National Petroleum Company (NNPC) says it deducted N245.77 billion for petrol under-recovery costs in March.
The value shortfall comprises the previous months’ outstanding and part of the February 2022 value shortfall.
NNPC said this in its monthly presentation to the Federation Account Allocation Committee (FAAC) meeting on Wednesday, April 27.
In the first quarter of 2022, the data showed that petrol subsidy payments totalled N675.93 billion.
According to the document, NNPC said it would also deduct N671.88 billion (under-recovery outstandings) from its remittance to FAAC for April — due to the federation in May.
Under-recovery or subsidy is the underpriced sales of premium motor spirit (PMS), better known as petrol.
“The estimated Value Shortfall of N671,882,996,685.81 (consisting of N519 billion for estimated April 2022 recovery plus N152 billion of March 2022) is to be recovered from April 2022 proceed due for sharing at the May 2022 FAAC Meeting,” NNPC said.
According to the document, the national oil company declared zero remittance to the federation account — the third time in 2022.
Further checks showed that, for the month of March, the gross domestic crude oil and gas revenue was 259.54 billion.
In January, February and March 2022, petrol subsidy gulped 210.38 billion, N219.78 billion, and N245.77 billion, respectively.
Payments for subsidies have continued to dwindle remittances accrued to the federation account. In February, the federal government postponed the planned petrol subsidy removal, citing “high inflation and economic hardship”.
It, however, asked the national assembly to approve N4 trillion to cater for costly petrol subsidy in 2022 — as a result of high global oil prices due to the Russia-Ukraine war.
The World Bank had advised Nigeria to rethink its steps in the petrol subsidy policy.
April 28, 2022
FG, States, LGs Share N699.824bn As VAT Revenue Grows By N5bn
The Federation Accounts Allocation Committee (FAAC) has shared a total of N699.824 Billion to the Federal Government, states, and local government areas.
The amount is the allocation for December 2021.
This was contained in a communique issued at the end of a virtual meeting of FAAC for January 2022, said Henshaw Ogubike, a spokesman for the office of the Accountant-General of the Federation (OAGF), in a statement on Friday.
“The N699.824 billion total distributable revenue comprised distributable statutory revenue of N507.267 billion, distributable Value Added Tax (VAT) revenue of N187.409 billion, and Exchange Gain of N5.148billion,’ said the statement.
“In December 2021, the total deductions for cost of collection were N30.003 billion and the total deductions for statutory transfers, refunds and savings were N36.643 billion. The balance in the Excess Crude Account (ECA) was $35.368 million.”
The communique confirmed that from the total distributable revenue of N699.824 billion, the Federal Government received N279.457billion, the state governments received N221.190 billion, and the local government areas received N163.879 billion, while the sum of N35.297 billion was shared to the relevant states as 13 per cent derivation revenue.
According to the statement, the distributable statutory revenue of N507.267 billion was available for the month, out of which Federal, states, and local governments received N248.885 billion, N126.238 billion, and N97.324 billion respectively. The sum of N34.820 billion was also shared with the relevant states as 13 percent derivation revenue.
“In the month of December 2021, the gross revenue available from the Value Added Tax (VAT) was N201.255 billion. This was higher than the N196.175 billion available in the month of November 2021 by N5.080 billion.
“The sum of N5.796 billion allocation to NEDC and N8.050 billion cost of the collection were deducted from the N201.255 billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N187.409 billion,” the statement added.
“From the N187.409 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N28.111 billion, the state governments received N93.705 billion and the local government councils received N65.593 billion.
“The Federal Government received N2.461 billion from the total Exchange Gain revenue of N5.148 billion, the state governments received N1.248 billion, the local government councils received N0.962 billion, and N0.477 billion was shared to the relevant states as 13 per cent derivation revenue.”
According to the communique, Companies Income Tax (CIT) and Value Added Tax (VAT) increased reasonably, Petroleum Profit Tax (PPT) and Oil and Gas Royalties decreased significantly while Import and Excise Duties decreased marginally, in December last year.
January 22, 2022
FG, States, LGs Share N696.965bn As VAT Revenue Hits N166.228bn
The Federation Accounts Allocation Committee (FAAC) has shared a total of N696.965 billion as federation allocation for the month of August.
Oshundun Olajide, a Deputy Director of Information at the Office of Accountant General of the Federation (OAGF), disclosed this in a statement on Thursday.
This comes as the nation records a significant increase in the collection of Value Added Tax (VAT) and import duty, amid the lingering controversy over whose responsibility it is to collect VAT.
A series of court cases and rulings emerged recently as the Rivers State government, backed by Lagos and some other states, challenge the legality of the Federal Inland Revenue Service (FIRS) to collect VAT.
Olajide stated that FAAC held a virtual conference on Wednesday where it shared the sum to the three tiers of government.
“From this amount, inclusive of Value Added Tax (VAT), Exchange Gain, Excess Bank Charges and Revenue from non-oil, the Federal Government received N289.257 billion, the states received N217.183 billion, the local government councils got N161.541 billion, while the oil-producing states received N41.376 billion as derivation (13 per cent of mineral revenue),” the statement read.
The communique issued at the end of the meeting indicated that the gross revenue available from the Value Added Tax (VAT) for August was N166.228 billion.
According to it, the Federal Government got N24.934 billion of the revenue generated from VAT, while the states and local government councils (LGCs) received N83.114 billion and N58.180 billion respectively.
“The sum of N50 billion from non-oil revenue was equally distributed accordingly to the three tiers of government as follow – the Federal Government received N26.340 billion; the states got N13.360 while the LGCs received N10.3 billion.
“The distributed statutory revenue of N477.504 billion was received for the month from which the Federal Government received N236.437 billion, states got N119.924 billion, LGCs got N92.4456 billion, and derivation (13 per cent mineral revenue) got N28.687 billion,” the statement added.
It revealed that Companies Income Tax (CIT), Petroleum Profit Tax (PPT), oil and gas royalties, and excise duty recorded decreases, while import duty and VAT increased significantly.
The communique indicated that total revenue distributable for the month included gross statutory revenue of N477.504 billion, VAT of N166.228 billion, exchange gain of N2.830 billion, excess bank charges recovered of N0.403 billion, and N50 billion from non-oil revenue.
This brings the total distributable revenue to N696.965 billion for the month of August.
September 24, 2021
Again, NNPC Set to Deduct N215bn from September FAAC
The Nigerian National Petroleum Corporation (NNPC) is once more set to deduct about N215.3 billion from its contribution to next month’s joint Federation Account.
The aforementioned amount is a combination of N175 billion value shortfall or subsidy and N40 billion Joint Venture (JV) cost recovery.
In a document obtained by Daybreak detailing the national oil company’s presentation to the Federation Account Allocation Committee (FAAC) meeting which held between 18th and 19th of August, the data showed that NNPC paid N67.280 billion to the joint account in July, in contrast to the N47.162 billion in June. The July payment was about N20 billion higher than that of June.
Furthermore, in January, net revenue to FAAC was N90.8 billion; N64.161 billion in February and N41.184 billion in March. Also, it was zero in April; N38.608 billion in May; N47.162 billion in June and N67.280 billion in July.
Year-to-date, the document showed that the NNPC has only been able to make a contribution of N349.254 billion to the three tiers of government with a huge deficit of N1.115 trillion.
But added to JV cost recovery and priority projects, the document revealed that total distribution made by the corporation in January was N195.624 billion; it was N191.194 billion in February, and it hit N224.589 billion in March. Additionally, it decreased to N156.366 billion in April, but again rose to N320.315 billion in May and was N295.396 billion and N270.405 billion in June and July respectively.
Overall, NNPC’s crude oil lifting of 8.66 million barrels (export and domestic crude) in the month recorded 19.84 per cent decrease relative to the 11.58 million barrels lifted the previous month.
In the same vein, the NNPC presentation to the joint committee showed that Nigeria maintained 1.554 million bpd Organisation of Petroleum Exporting Countries (OPEC) production cut during the month.
Crude oil export revenue received in July 2021 amounted to $12.95 million, equivalent to N4.97 billion, while domestic gas receipts in the month was N6.8 billion.
In addition Nigeria NLG (NLNG) feedstock was valued at $54.09 million during the period out of which $44 million was received during the month, the difference being Modified Carry Agreement (MCA) obligations, gas reconciliation and credit notes.
“Out of the value shortfall of N143, 286,281.752.62, the sum of N103.286.281, 752.62 was applied on the gross domestic receipts before arriving at the net receipt of N67.28 billion in order to make funds available for JV cost recovery to sustain the existing production level.
“The balance of N40.000.000.000.00 will be deducted in subsequent months. The July, 2021 value shortfall of N175.317.701.294.80 and outstanding balance of N40,000.000,000.00 will be deductible from the August 2021 proceeds due for sharing at the September, 2021 FAAC meeting,” the NNPC stated.
Last month, the corporation continued its regime of deductions from the federation account withholding N117.4 billion from the three tiers of government.
At the time, the total subsidy retention on petrol since this year had hit a total of N608.808 billion since the full return of what the government terms under-recovery in February this year.
In June, the NNPC told the nation that Nigeria was losing about 42 million litres of petrol to the activities of smugglers across the country’s borders, increasing Nigeria’s estimated daily consumption of 60 million litres to 103 million litres, thereby worsening the subsidy payment regime.
August 27, 2021
Leveraging Infrastructural Development to Unlock Nasarawa State’s Economic
By Adefolarin A. Olamilekan
For Nasarawa state to minimize and benefits from it centralized posture among states that made up the North-Central geopolitical zone. To overcome the effects of unstable national economic shock from international oil prices and reduces dependence on FAAC.
The state under the current Governor A.A Sule has the opportunity to leverage on infrastructural development to unlock Nasarawa state’s economic.
This is a key investment drive that most state government in Nigeria hardly takes advantage off, but the few over the year’s that dear to take on this challenge have left legacy that generations and generations rave about them. .
Although, it almost a 100% capital intensive, the Nasarawa state government gearing towards developing infrastructure is to encourage accessibility of the state to all viable investors local and foreign, as well as for an industrial hub.
Critically, stakeholders and investors had raised concerns about the level of infrastructural development in the Nasarawa state, over the years. Nonetheless, we commend the current drive of Governor A.A Sule, especially as it relates to wooing investors to the State through its economic blueprint agenda.
However, this is not enough, and we believe Governor A.A Sule understands this clearly having had a very successful business set and requisite.
Nasarawa state with proven reserves of over 20 different solid mineral resources, arable land so good for agriculture, having one of the best climate weather conditions that is gracious and been the gate way to far northern part and outpost to southern Nigeria decently.
One attributes of the state is it closeness to the Federal Capital Territory Abuja, the Nigeria capital. This alone made should make the state an enviable stratagem to fast track infrastructural development in the state.
And its does not matter were this infrastructure development is concentrated, the end point is that the entire state remains a corridor to every other part of the country. Consequently far for industrializations
While the challenges are daunting, the need for infrastructure development provides an opportunity to harness the state’s solid minerals and other natural potential.
For example with the Akurba Power Substation Lafia, Nasarawa State Cargo Airport, Kwandere, Farin Ruwa Dam, flag-off of the construction of hundred of kilometers of road network scattered all over the state there are hopes attract business interest to the state.
A case in point is Akurba Power Substation in Lafia with optimism that power generates there would increasingly serve as deployment feedstock to industries and help power the state.
In addition, the infrastructure development project is expected to support the development of Dangote sugar in Tunga, Fertilizer Company in Lafia and other part of the state, Agro-processing companies all around Keffi and Karu, and the mining site companies in Nasarawa LGA, and other Agro-industries that will generate employment opportunities and facilitate balanced economic growth in the state.
Will Governor A.A Sule of Nasarawa and his team take up this task of infrastructural development project in the aid to the realization of the state development agenda goals? This piece is clarion call, though Governor A.A Sule his working drastically to reduced the level of infrastructure deficits in the state. Our case is for his administration, to do better as leveraging on infrastructure development remains at the peak of unlocking the economy of the state less barrier.
August 23, 2021
FAAC Shares N760.7bn July Allocation to FG, States, LGs
The Federation Accounts Allocation Committee (FAAC) has shared a total of N760.717 billion revenue to the federal, state and local governments for the month of July.
This was contained in a communiqué issued at the end of the virtual meeting of the committee yesterday night.
The N760.717 billion total distributable revenue comprised distributable statutory revenue of N617.705 billion; distributable Value Added Tax (VAT) revenue of N140.555 billion and Exchange Gain of N2.457 billion.
Cost of collection, statutory transfers and refunds accounted for N63.501 billion during the month in view.
The communiqué confirmed that from the total distributable revenue of N760.717 billion; the federal government received N321.226 billion, the states got N222.514 billion while the local government councils received N166.562 billion.
The sum of N50.415 billion was shared to the relevant states as 13 per cent derivation revenue.
Also in the month of July, the gross revenue available from VAT was N151.134 billion. This was lower than the N154.465 billion available in the preceding month of June by N3.331billion.
The communique explained that the sum of N4.534 billion allocation to North East Development Commission (NEDC) and N6.045 billion cost of revenue collection were deducted from the N151.134 billion gross VAT, resulting in the distributable VAT revenue of N140.555 billion.
From the N140.555 billion distributable VAT revenue, the federal government received N21.083 billion, state governments received N70.278 billion while the local government councils received N49.194 billion.
Similarly, from the total Exchange Gain revenue of N2.457 billion, the federal government received N1.139 billion, state governments received N0.578 billion, local government councils got N0.445 billion and N0.295 billion was given to the relevant states as 13 per cent derivation revenue.
Petroleum Profit Tax (PPT), Companies Income Tax (CIT), oil and gas royalties recorded significant decreases while Value VAT, import and excise duty decreased marginally in July.
The balance in the Excess Crude Account (ECA) as at August 20, 2021 stood at $60.855 million.
August 21, 2021
NGF Okay Full Deregulation of Petrol, N385 Pump Price
Ahead of today’s Federation Accounts Allocations Committee (FAAC) meeting, the Nigeria Governors’ Forum (NGF) yesterday at its virtual meeting considered the report of a committee headed by Kaduna State Governor, Mallam Nasir el-Rufai, and accepted its recommendation that backs full deregulation of petrol, and suggests that the pump price of the product should hover around N385 per litre.
The committee also recommended that the federal government should buy 113 buses to cushion the effects of the price increase, a reliable source at the meeting told THISDAY.
el-Rufai’s six-man committee was set up early this year by the National Economic Council (NEC) headed by Vice President Yemi Osinbajo to look into the dwindling revenues of states and make recommendations to the council.
Apart from el-Rufai, Governors Godwin Obaseki of Edo State, Kayode Fayemi of Ekiti State; and David Umahi of Ebonyi State are also members of the committee.
The other members of the committee are the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari.
The four governors, who are members of the committee, presented its report to their colleagues, who endorsed it.
The report is subject to final approval by NEC, which will also meet today.
However, in a communiqué released after the meeting last night, the governors disclosed that el-Rufai gave a briefing on the appropriate pricing of petrol in Nigeria, where he called for full deregulation.
According to the communiqué, the Kaduna State governor further revealed that between N70 billion and N210 Billion is spent monthly to subsidise the petrol price at N162 per litre.
The committee identified Lagos, Oyo, Ogun, Rivers and Abuja as the top consumers of petrol.
Presenting the report to his colleagues, el-Rufai reportedly said the increase in the price of petrol to N385 per litre would help stem the increasing smuggling of the product to neighbouring countries.
According to him, if petrol sells at N385 per litre, FAAC would gain between N1.3 trillion and N2. 2.3 trillion per annum.
The committee also recommended that the federal government should sell the three refineries after rehabilitation.
The report revealed that Nigeria lost billions of dollars due to the COVID-19 pandemic, adding that there is already a cash crunch in the states.
NNPC had said that it would remit zero allocation to FAAC due to the huge cost of subsidising petrol.
Some of the governors at the meeting opposed the recommendations, insisting that they will create more hardship for Nigerians.
Contributing to the report, a South-west governor said that it would be very difficult to convince Nigerians and labour to accept the report.
But other governors insisted that the earlier there is full deregulation, the better for the country as it remains an evil day postponed.
The committee recommended that the federal government should buy and distribute over 113 buses to states and major cities as a palliative to the proposed increase in the price of petrol.
May 20, 2021