The Federation Account Allocation Committee (FAAC) has injected a total sum of N802.407 billion into the economy as a June 2022 allocation for the three tiers of government.
The committee after its meeting in Abuja disclosed the amount comprised of N608.580 billion statutory revenue and distributable Value Added Tax (VAT) revenue of N193.827 billion.
The amount was shared as Federation Account Revenue to the Federal Government, States, and Local Government Councils.
The communique issued after the meeting showed that in June 2022, the two collection agencies, Nigeria Customs Service (NCS) and the Federal Inland Revenue Service (FIRS) collected N44.606 billion as the cost of the collection while deductions for transfers, savings, refunds and 13 per cent derivation to Anambra State amounted to N373.200 billion.
For the June allocation, of the total distributable revenue of N802.407 billion; the Federal Government received N321.859 billion, the 36 State Governments and the FCT received N245.418 billion and the 774 Local Government Councils got N182.330 billion.
The sum of N52.799 billion was shared with the littoral states as 13 per cent derivation revenue.
The FAAC records showed that gross statutory revenue of N1,012.065 billion was received for June 2022, higher than N589.952 billion received in May by N422.113 billion.
A breakdown of the N802.407 billion showed that, from the N608.580 billion distributable statutory revenue, the Federal Government received N292.785 billion, the State Governments received N148.505 billion and the Local Government Councils received N114.491 billion. The sum of N52.799 billion was shared with the relevant States as 13 per cent derivation revenue to the oil-producing states.
For June 2022, the gross revenue available from the Value Added Tax (VAT) was N208.148 billion and also lower than the N213.179 billion available if May 2022 by N5.031 billion.
From the N193.827 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N29.074 billion, the State Governments received N96.914 billion and the Local Government Councils received N67.839 billion.
For June 2022, Companies Income Tax (CIT) and Petroleum Profit Tax (PPT) recorded tremendous increases, while Import Duty, Oil and Gas Royalties increased marginally. Excise Duties decreased significantly while Value Added Tax (VAT) decreased marginally.
The worrisome aspect of the meeting was the disclosure that the balance in the Excess Crude Account (ECA), was $376,655.09.
The ECA is a savings account retained by the Federal Government and is funded by the difference between the market price of crude oil and the budgeted price of crude oil as contained in the appropriation bill.
The Excess Crude Account was $72.4 million in January 2021 but fell to $35milion as of January 17th, in a space of one year despite crude oil averaging higher than Nigeria’s benchmark for the year.
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