September revenue: FAAC deducts N126.27bn for collection cost, statutory transfers, others
…Shares N739.97bn to FG, States, LGCs
…Suspends $418m Paris Club deductions
The Federation Accounts Allocation Committee (FAAC) has deducted the sum of N126.272billion for cost of collection, statutory transfers, savings and refunds from the September 2021 revenue. The committee also shared a total of N739.965 billion September 2021 federation account revenue to the Federal, States and Local Governments Councils.
However, members of the committee comprising representatives of the federal and state governments agreed to the suspension of the deduction of $418m Paris Club refunds from states and local governments’ accounts pending the determination of court cases on the issue.
The Chairman of the Nigeria Governors’ Forum (NGF), Dr Kayode Fayemi had raised the alarm on Tuesday while speaking with journalists on the sidelines of the 27th Nigerian Economic Summit (NES 27) in Abuja that state governments will not accept arbitrary deductions of funds from the federation account particularly the $418million Paris Club consultants fee which could worsen the ability of state governments to pay salaries of workers.
According to reports, last week’s Federation Account Allocation Committee (FAAC) meeting ended in a deadlock over opposition by the governors on the commencement of deduction of $418 million from the local governments’ accounts to pay private consultants for the Paris Club refund.
Consultants had claimed the amount as a percentage for the payment of services rendered to the states and local government councils. But the amount did not go down well with the governors who requested a forensic audit over the claim made by consultants.
However, the N126.272billion deducted was contained in a communiqué issued at the end of the virtual meeting of the Federation Account Allocation Committee (FAAC) for October, 2021.
A statement issued by the Director of Press,Information and Public Relations, Henshaw Ogubike stated that the N739.965billion total Distributable Revenue comprised distributable Statutory Revenue of N577.765billion, distributable Value Added Tax (VAT) revenue of N159.096billion and Exchange Gain of N3.104billion.
In September 2021, the sum of N126.272billion was the total deductions for cost of collection, statutory transfers, savings and refunds. The balance in the Excess Crude Account (ECA) was $60.860million.
The communiqué confirmed that from the total Distributable Revenue of N739.965billion, the Federal Government received N301.311billion, the State Governments received N220.272billion, and the Local Government Councils received N164.176billion. The sum of N54.206billion was shared to the relevant States as 13% derivation revenue.
The distributable Statutory Revenue of N577.765billion was available for the month. From this amount, the Federal Government received N276.008billion, the State Governments received N139.995billion and the Local Government Councils received N107.930billion. The sum of N53.831billion was given to the relevant States as 13% derivation revenue.
In September 2021, the gross revenue available from the Value Added Tax (VAT) was N170.850 billion. This was lower than the N178.509 billion available in the month of August by N7.659billion.
The sum of N4.920billion allocation to NEDC and N6.834billion cost of revenue collection were deducted from the N170.850billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N159.096billion.
From the N159.096billion distributable Value Added Tax (VAT) revenue, the Federal Government received N23.864billion, the State Governments received N79.548billion and the Local Government Councils received N55.684billion.
The Federal Government received N1.438billion from the Exchange Gain revenue of N3.104billion. The State Governments received N0.729billion, the Local Government Councils received N0.562 billion and N0.375 billion was shared to the relevant States as 13% derivation revenue.
According to the communiqué, in the month of September 2021, Petroleum Profit Tax (PPT), Oil and Gas Royalties and Excise Duty increased significantly while Companies Income Tax (CIT), Value Added Tax (VAT) and Import Duty decreased marginally.
