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FAAC donates N601 billion to three tiers of government – Perm Sec reveals

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FAAC
Aliyu Ahmed, Permanent Secretary, Ministry of Finance, Budget and National Planning

The Federal Account Allocation Committee (FAAC) donated a sum of N601.1billion to the three tiers of government in November 2020 from the revenue generated.

Aliyu Ahmed, Permanent Secretary, Ministry of Finance, Budget and National Planning, disclosed this at the end of the FAAC meeting in Abuja on Wednesday, December 16.

Ahmed explained that the total amount shared “represented” the cost of collection from Nigeria Customs Service (NCS), Department of Petroleum Resources (DPR), and the Federal Inland Revenue Service (FIRS).

He said: “The amount disbursed comprised of N341.50bn from the Statutory Account, N72bn from Distribution of FGN Intervention Fund, Distribution of N45bn from Non-Oil Revenue, N39.54bn from FOREX Equalisation Account and N141.86bn from Valued Added Tax (VAT).

“The distribution is as follows; Federal Government got N21.872 bn, the states received N72.906 bn, Local Government Councils got N51.034 bn, while Cost of Collection – FIRS and NCS was N6.271 bn and Allocation to the NEDC project amounted to N4.704 bn.

“The distributed Statutory Revenue of  N436.457 bn received for the month, was higher than the N378.148 bn received for the previous month by N58.309 bn.

 “From the total, the federal government received N190.122 bn, states got N96.433 bn, LGCs got N74.345 bn, while the 13 per cent Derivation from Mineral Revenue amounted to N30.370 bn and Cost of Collection/ Transfer and Refund got N45.187 bn.”

The Perm Sec, however, highlighted the shared revenue by the three tiers of government as follows:

  • The Federal Government received N215.600 billion.
  • States got N171.167 billion.
  • Local government councils had N126.789 billion.
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It was learnt that for the Niger Delta oil-producing states, the 13% derivations summed up to N31.392 billion, while the Cost of Collection/Transfer and Refund was N56.162 bn.

He added that the Oil and Gas Royalty, Import Duty, Excise Duty, VAT, and Petroleum Profit Tax (PPT) increased substantially, while Companies Income Tax (CIT) recorded a sharp drop.

Meanwhile, Techeconomy.ng had reported that the FAAC donated a sum of N639.9 billion to the three tiers of government in October 2020 from the revenue generated in September 2020.

The monthly disbursement dropped by 6.2% in October compared to N682.1 billion shared in September and 5.4% decline compared to N676.4 billion shared in August 2020.

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