FAAC Injects N780.926bn Into Economy
AMINA HUSSAINI, Abuja
The Federation Accounts Allocation Committee (FAAC) has injected a total N780.926 billion into the economy, reflating the three tiers of government to enable them to meet their responsibilities for the month of March.
With this, salaries and other obligations of the tiers of government are to be settled as the country braces up for eventualities occasioned by the ravaging COVID-19 pandemic which has dislocated its economy.
The amount shared for March allocation by FAAC among the Federal, States and Local Governments and relevant Agencies in the country comprised Statutory Revenue, Value Added Tax (VAT), and Exchange Gain. while the balance in the Excess Crude Account (ECA) was $ 72.221 million.
The gross statutory revenue for the month of March 2020 shared at the meeting that met via tele-conferencing was N597.676 billion, higher than the N466.058 billion received in February and that of January 2020 by N131.618 billion.
The Value Added Tax (VAT) yielded gross revenue of N120.268 billion in March 2020 as against N99.552 billion in February 2020, resulting in an increase of N20.716 billion.
A total of N62.928 billion was available from Exchange Gain in the month under review.
Of the total N780.926 billion, the Federal Government received N264.330 billion, the State Governments received N181.487 billion, and the Local Government Councils received N135.950 billion. The Oil Producing States received N38.751 billion as 13 percent derivation revenue, while the cost of revenue collection by Revenue Agencies and allocation to NEDC was N160.408 billion.
The breakdown shows the Federal Government received N217.773 billion from the gross statutory revenue of N597.676 billion. The State Governments received N110.457 billion and the Local Government Councils received N85.158 billion. The sum of N32.299 billion was given to the relevant States as 13% derivation revenue and N151.989 billion as cost of revenue collection by Revenue Agencies and allocation to NEDC.
The Federal Government received N16.777 billion from the Value Added Tax (VAT) revenue of N120.268 billion available in the month of March 2020. The State Governments received N55.925 billion, the Local Government Councils received N39.147 billion, while the cost of collection by Revenue Agencies and allocation to NEDC was N8.419 billion.
From the Exchange gain, however, the Federal Government received N29.780 billion, the State Governments received N15.105 billion, the Local Government Councils received N11.645 billion and the Oil Producing States received N6.452 billion from the total revenue of N62.982 billion available from Exchange Gain.
The Statement revealed that in the month of March 2020, Petroleum Profit Tax (PPT), Companies Income Tax(CIT), Import and Excise Duties, Oil and Gas Royalties and Value Added Tax (VAT) all recorded substantial increases.
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