FG, States Received N3.88tn From FAAC In Six Months

EFCC Discovers 49m Naira At Kaduna Airport

 

 

The Federation Accounts Allocation Committee (FAAC) on Tuesday said it shared N3.879 trillion to the Federal Government, States, local government areas, and other statutory recipients in the first half of 2020.

In a statement by the committee’s Director, Communications and Advocacy, Orji Ogbonnaya, the Federal Government received a total of N1.53 trillion while the states got N1.29 trillion and the 774 local government areas received N771.34 billion.

Mr Orji stated that the figures, based on the latest edition of the quarterly review of the Nigeria Extractive Industries Transparency Initiative (NEITI), were very volatile.

Giving a further breakdown, Mr Orji explained that the N1.53trillion received by the FG in H1 2020 was 4.28% lower than the N1.599 trillion it got in the first half of 2019 and 7.36% lower than the N1.652 trillion it received in the first half of 2018.

Similarly, he stated that it was the same “for states, a total of N1.298 trillion was disbursed in the first half of 2020. This was 2.8% lower than the N1.35 trillion disbursed in the first half of 2019, and 5.6% lower than the N1.375 trillion disbursed in the first half of 2020.

“For local government areas, the 2020 first half disbursements were 2.64% and 3.04% lower than the corresponding disbursements for 2019 and 2018 respectively.”

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Mr Orji pointed out that the total FAAC disbursements in the second quarter of 2020 were slightly lower than the N1.945 trillion disbursed in the first quarter of 2020. This aligned with the projections made in the previous issue of the NEITI Quarterly Review which projected lower FAAC disbursement in the second quarter.

He added that the NEITI report attributed the 0.55% decrease in Q2 2020 to a couple of factors, namely: “rebound in oil prices in the second quarter as a result of ease of lockdowns by countries across the world and the adjustment of the official exchange rate by the CBN from N307/$1 to N360/$1 in March resulting in higher naira disbursements.

“Disbursements were very volatile in the first half of 2020, compared to 2018 and 2019. Unlike 2018 and 2019 where aggregate disbursements increased and decreased in successive months, in 2020 they fell for two straight months, increased in one month, and then decreased for two straight months,” he stated.

The NEITI spokesman also disclosed that from January to May 2020, actual government revenue was N1.62 trillion, representing “62% of the expected pro-rata revenue of N2.62 trillion from the revised budget”. That also explained a shortfall of 38% in government revenue for the first five months of the year. As oil prices continue to rise, and with the increased pace of economic activities, NEITI projects that “Government revenue will perform better in the second half of 2020, with the possibility of shortfalls in revenue compared to budgeted figures.”

He stressed that the net FAAC disbursements and deductions for states for the first half of 2020 had wide disparities.

“Total net disbursements received by Delta State (N100.81 billion) were higher than the combined total net disbursements of N99.47 billion received by six states – Osun, Cross River, Plateau, Ogun, Gombe, and Ekiti.

“Also, the combined total net disbursements of N321.29 billion received by the four highest receiving states of Delta, Akwa Ibom, Rivers, and Bayelsa were higher than the combined total net disbursements of N314.08 billion received by 16 states – Osun, Cross River, Plateau, Ogun, Gombe, Ekiti,  Zamfara, Kwara, Nassarawa, Ebonyi, Taraba, Benue, Adamawa, Ondo, Bauchi, and Abia”. While Lagos State had the highest deductions, Yobe State had the lowest,” he stated.

FAAC Shares Over N651bn June 2020 Revenue To FG, States And LGAs

 

The Federation Accounts Allocation Committee (FAAC) has shared a total of 651.184 billion as of June 2020 Federation Account Revenue to the Federal, States and Local Governments Councils and relevant agencies in the country.

This was contained in a communiqué by the Federation Account Allocation Committee (FAAC) after its monthly meeting for July 2020 held through virtual conferencing; chaired by the Accountant General of the Federation, Ahmed Idris FCNA

The gross statutory revenue available in June 2020 was N524.526 billion; the gross revenue from the Value Added Tax (VAT) was N128.826 billion and the revenue from the Exchange Gain was N42.832 billion. This brought the total revenue for the month to N696.184 billion. From this total, the sum of N45 billion was saved in the Excess Non-Oil Revenue Account and the balance of N651.184 billion was shared to the three tiers of government and relevant agencies.

The balance in the Excess Crude Account (ECA) as of 16th July 2020 was $72.407 million.

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The gross statutory revenue of N524.525 billion available in June was higher than the N413.953 billion received in the previous month by N110.573 billion. Also, the gross revenue of N128.826 billion available from the Value Added Tax (VAT) was higher than the N103.873 billion in the previous month by N24.953 billion.

The communiqué indicated that from the total revenue, the Federal Government received N266.131 billion, the State Governments received N185.774 billion, and the Local Government Councils received N138.974 billion.

The Oil Producing States received N28.496 billion as 13% derivation revenue, N76.809 billion was given to revenue / Relevant Agencies as follows:

Cost of collection…..24.047

Transfer to NEDC…..3.865

PTF….3.897

Transfer to Excess non oil…..45.000

TOTAL……76.809

The Federal Government received N227.584 billion from the gross statutory revenue, the State Governments received N115.434 billion and the Local Government Councils received N88.995 billion. The sum of N24.722 billion was given to the relevant States as a 13% derivation revenue.

The Federal Government received N17.971 billion from the Value Added Tax (VAT) revenue, the State Governments received N59.904 billion, the Local Government Councils received N41.933 billion, and the revenue/ Relevant Agencies received,5.153 as cost of collection and 3.865 transferred to NEDC, totalling N9.018 billion

The communiqué confirmed that the Federal Government received N20.576 billion, the State Governments received N10.436 billion, the Local Government Councils received N8.046 billion and the Oil Producing States received N3.774 billion from the Exchange Gain revenue.

The Communiqué stated that in the month of June 2020, Import and Excise Duty, Value Added Tax, Companies Income Tax, Oil and Gas Royalty recorded significant increases while Petroleum Profit Tax declined.

FG, States, LGAs Share N651bn As June 2020 Allocation

File photo

 

 

 

Nigeria’s three federating units and other relevant agencies have shared 651.184 billion as allocation for June 2020, according to the the Federation Account Allocation Committee (FAAC). 

This was contained in a statement from the FAAC Director of Information, Press and Public Relations, Henshaw Ogubike.

According to the statement, the decision followed FAAC’s monthly meeting for July 2020 which was held virtually and chaired by the Accountant General of the Federation, Ahmed Idris.

“The gross statutory revenue available in June 2020 was N524.526 billion; the gross revenue from the Value Added Tax (VAT) was N128.826 billion and the revenue from the Exchange Gain was N42.832 billion,” the statement said.

“This brought the total revenue for the month to N696.184 billion. From this total, the sum of N45 billion was saved in the Excess Non-Oil Revenue Account and the balance of N651.184 billion was shared to the three tiers of government and relevant agencies.”

According to FAAC, “the balance in the Excess Crude Account (ECA) as at 16th July, 2020 was $72.407 million, explaining that the gross statutory revenue of N524.525 billion available in June was higher than the N413.953 billion received in the previous month by N110.573 billion.”

It also added that the gross revenue of N128.826 billion available from the Value Added Tax (VAT) was higher than the N103.873 billion in the previous month by N24.953 billion.

The statement noted that from the total revenue, the Federal Government received N266.131 billion, the State Governments received N185.774 billion, and the Local Government Councils received N138.974 billion.

Furthermore, the oil producing states got N28.496 billion as 13% derivation revenue, N76.809 billion was given to revenue / Relevant Agencies as follows:
Cost of collection…..24.047,
Transfer to NEDC…..3.865
PTF….3.897

Transfer to Excess non oil…..45.000
TOTAL……76.809.

It equally said the Federal Government got N227.584 billion from the gross statutory revenue, the State Governments received N115.434 billion and the Local Government Councils had N88.995 billion.

N24.722 billion was given to the relevant States as 13% derivation revenue, also.

The Federal Government got N17.971 billion from the Value Added Tax (VAT) revenue, the State Governments received N59.904 billion, the Local Government Councils had N41.933 billion, and the revenue/ Relevant Agencies received ,5.153 as cost of collection and 3.865 transferred to NEDC , amounting to N9.018 billion, the statement added.

Similarly, FAAC said the Federal Government received N20.576 billion, the State Governments had N10.436 billion, the Local Government Councils got N8.046 billion and the oil producing states received N3.774 billion from the Exchange Gain revenue.

In June 2020, Import and Excise Duty, Value Added Tax, Companies Income Tax, Oil and Gas Royalty reported major rises just as Petroleum Profit Tax declined.

 

FG, States And LGCs Share N606.196bn In April

 

The Federation Accounts Allocation Committee (FAAC) on Friday at its meeting via Virtual Conferencing, chaired by the Permanent Secretary, Federal Ministry of Finance, Budget and National Planning, Dr. Mahmoud Isa-Dutse, shared to the three tiers of government, a total sum of N606.196 billion as federal allocation for the month of April 2020.

From this amount, inclusive of VAT, Exchange Gain, Solid Mineral Revenue, Excess Bank Charges and Excess Oil Revenue, the Federal Government received N169.831 billon, the States received N86.140 billion, Local Government councils got N66.411 billion, while the oil producing states received N32.895 billion as derivation (13% Mineral Revenue).

However, cost of collection/FIRS Refund/ Allocation to North East Development Commission and Transfer to Excess Oil Revenue was N15.134 billion.

In a communique issued by the Federation Accounts Allocation Committee (FAAC) at the end of the meeting, indicated that the Gross Revenue available from the Value Added Tax (VAT) for April 2020 was N94.495 billion as against the N120.268 billion distributed in the preceding month of March 2020, resulting in a decrease of N25.772 billion. The distribution is as follows; Federal Government got N13.182 billion, the States received N43.941 billion, Local Government Councils got N30.758 billon.

The distributed Statutory Revenue of N370.411billion received for the month was lower than the N597.676 billion received for the previous month by N227.265 billion.

The communique also revealed that Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import and Export Duties, Oil and Value Added Tax (VAT), all recorded decreases.

The total revenue distributable for the current month (including cost of collection to NCS, DPR and FIRS) according to the committee is N606.196 billion.

FAAC: Avoid Sharing All Proceeds From Federation Account, CBN Tells FG

 

The Federal Government has been asked to caution the rate at which all the proceeds from the Federal allocation are being shared across all tiers of government.

This is according to the Monetary Policy Committee (MPC) of the Central Bank of Nigeria who disclosed this on Friday at the apex bank’s headquarters in Abuja.

The committee headed by the governor of the apex bank, Godwin Emefiele, called on the fiscal authorities to ensure that they build cushions that will help reduce the rising public debt.

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The MPC noted that the rate at which public debt was rising faster than both domestic and external revenue is a major concern that the fiscal authorities should strongly consider.

“The MPC, however, cautioned that public debt was rising faster than both domestic and external revenue, noting the need to tread cautiously in interpreting the debt to GDP ratio.

“The Committee also noted the rising burden of debt services and urged the Fiscal Authorities to strongly consider building buffers by not sharing all the proceeds from the Federation Account at the monthly FAAC meetings to avert a macroeconomic downturn, in the event of an oil price shock.”

The committee noted that the reliance on oil should gradually reduce and the Federal Government should ensure that the cost of governance is reduced.

“Government to gradually reduce reliance on oil receipts and focus on revenue diversification through reforms of the tax system.

“The Committee also called on Government to rationalize fiscal expenditure towards reducing the current excessively high cost of governance.”

In December 2019, a total of N716.298 billion was shared between the Federal Government, States, and Local Government Councils.

According to the Deputy Director, Press and Public Relations, Federation Accounts Allocation Committee (FAAC), Henshaw Ogubike, the total sum comprised revenue from Value Added Tax (VAT), Exchange Gain and the Statutory Revenue.

Ogubike stated that as of January 15, 2020, the balance in the Excess Crude Account (ECA) was $324.968 million.

FAAC Shares N716.2bn To FG, States And LG’s For December 2019

EFCC Discovers 49m Naira At Kaduna Airport

 

The Federation Accounts Allocation Committee (FAAC) has shared a sum total of N716.298 billion to the Federal Government, States and Local Government Councils for December 2019.

A statement by the Deputy Director, Press and Public Relations, Henshaw Ogubike, said the total sum comprised revenue from Value Added Tax (VAT), Exchange Gain and the Statutory Revenue.

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It stated that from the total revenue, the Federal Government received N287.929 billion, the State Governments received N191.302 billion, and the Local Government Councils received N143.698 billion.

Oil Producing States received N50.279 billion as 13 percent derivation revenue and the Revenue Generating Agencies received N43.089 billion as the cost of revenue collection.

“A breakdown of the distribution showed that from the gross statutory revenue of N600.314 billion, the Federal Government received N271.361 billion, the State Governments received N137.638 billion, the Local Government Councils received N106.113 billion, the Oil Producing States received N50.149 billion as 13% derivation revenue and the Revenue Collecting Agencies received N35.053 billion as cost of collection.

“From the Value Added Tax (VAT) revenue of N114.806, the Federal Government received N16.015 billion, the State Governments received N53.386 billion, the Local Government Councils received N37.369 billion and the Revenue Generating Agencies received N8.036 billion as cost of revenue collection.”

The statement added that in December 2019, there were significant increases in revenues from Companies Income Tax(CIT), Value Added Tax (VAT) Oil and Gas Royalties and Petroleum Profit Tax (PPT), while import duty increased marginally.

Meanwhile, as of January 15, 2020, the balance in the Excess Crude Account (ECA) was $324.968 million.

FAAC: FG, States And LGs Share N635.8bn For November

 

The Federal Government, States and Local Government Councils have shared a sum total of N635.826 billion as federal allocation for the month of November 2019.

A statement by the Director of Information, Federal Ministry of Finance, Budget and National Planning, Hassan Dodo, said that the allocation is inclusive of Value Added Tax (VAT), Exchange Gain and Forex Equalization.

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Giving a breakdown, Mr Dodo revealed that “FG received N267.883 billion, representing 52.68 percent, the States received N172.569 billion representing 26.72 percent, Local Government Councils got N129.972 billion, representing 20.60%, while the oil-producing states received N49.124 billion as 13 percent derivation mineral revenue; adding that the cost of collection/Transfers/ FIRS refund was N16.277 billion.

“The Federal Account Allocation Committee (FAAC), indicated that the Gross Revenue available from the Value Added Tax (VAT) for November 2019 was N90.166 billion as against the N104.910 billion distributed in the previous month of October 2019, resulting in a decrease of N14.744 billion.”

He stated that the distributed Statutory Revenue received for the month of November was N491.875 billion, lower than the N596.041billion received in the previous month.

“Revenues from Value Added Tax (VAT), Companies Income Tax (CIT), Royalties, Import duty, Petroleum Profit Tax (PPT) all decreased significantly, while Excess duty increased marginally.

“The total revenue distributable for the current month (including VAT, Exchange Gain and Forex Equalization) according to the committee is N635.826 billion, adding that as at November 19th, 2019, the Excess Crude Account (ECA) is $324.968 million.”

Federal, States, LGs Get N3,84trn FAAC In Six Months – NEITI

NEITI, NNPC, Federation Account

 

The Federal, States and Local governments shared N3.84trillion allocations between January and June 2019.

This is according to the latest edition of Nigeria Extractive Industries Transparency Initiative (NEITI) Quarterly Review.

In a statement by NEITI’s Director, Communications and Advocacy, Orji Orji, that the Federal Government received N1.599 trillion, the 36 states got N1.335 trillion while the 774 local governments shared N792 billion during the period under review.

The FAAC disbursement of N3.84 trillion for the first half of 2019 was slightly lower than the N3.94 trillion disbursed during the same period in 2018  but higher than the N2.78 trillion disbursed in the first half of 2017.

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On a quarter on quarter basis, the second quarter of 2019 was the lowest since the fourth quarter of 2017.

“The quarterly FAAC disbursements from Q1 2013 to Q2 2019 reveal that the total disbursement of N1.913 trillion in the second quarter of 2019 was the lowest since the fourth quarter of 2017 when N1.700 trillion was disbursed. The figure shows that three quarters of 2018 had total disbursements above N2 trillion.”

Meanwhile, Delta State maintained the lead among states of the Federation with the highest share of FAAC allocation during the period under review with N108.7billion, while Osun received the lowest amount of N10.09billion.

The Report which revealed an interesting pattern of wide disparities in disbursements received by states also noted that the disbursements by a majority of the states (27 states) in the first half of 2019 were lower than disbursements in the first half of 2018. Thus, 75% of the states received higher revenue in the first half of 2018 than the first half of 2019.

FG, States And LGs Share N610.368bn In February

FG, States And LGs Share N610.368bn In February

 

The Federation Accounts Allocation Committee (FAAC) has shared a total of N610.368 billion to the three tiers of government.

According to a statement on Wednesday by the Director of Information at the Ministry of Finance, Hassan Dodo, the money was the federal revenue generated in the month of January but shared in February.

The statement quoted the Accountant General of the Federation, Ahmed Idris, as making the disclosure while briefing reporters at the end of the FAAC meeting held in Abuja.

Mr Idris said the Minister of Finance, Zainab Ahmed, was to approve additional N50 billion from the Foreign Exchange Equalisation Account.

He added that the money would be distributed accordingly while the Excess Crude Account (ECA) currently stands at $249 billion.

A communique issued by FAAC revealed that from the N610.368 billion, the Federal Government received N252.412 billion, the states received N170.541billion, while the local governments received N127.923 billion.

The oil-producing states received N41.992 billion as 13 per cent derivation revenue while the revenue generating agencies received N17.5 billion as the cost of revenue collection.

The gross revenue of N505.246 billion was received in the month of January, which is N42.216 billion lower than the N547.462 billion received in the previous month.

The gross revenue from Value Added Tax (VAT) was N104.468 billion as against N100.760 billion distributed in the previous month, resulting in an increase of N3.708 billion.

From the total gross revenue from VAT, the Federal Government received N15.044 billion, the states received N50.145 billion, and the local governments received N35.102 billion while the revenue generating agencies got N1.178 billion.

The communique stated that for the month of January 2019, the federation crude oil sales increased by 2.4 million barrels, resulting in increased federation revenue by $149.94 million despite a drop in the price of crude oil from $81.06 to $75.00 per barrel.

In the month under review, oil royalty, import, and excise duties increased substantially while Companies Income Tax (CIT) and Petroleum Profit Tax (PPT) decreased marginally.

FG, States, LGs Share N648.71bn For September

FG, States, LGs Share N648.71bn For September
Minister of Finance, Mrs Zainab Ahmed (file)

 

The Federal, state, and local governments have shared a total of N648.71 billion for the month of September.

Minister of Finance, Mrs Zainab Ahmed, announced this on Friday at the end of the monthly Federation Account Allocation Committee (FAAC) meeting in Abuja.

According to her, the gross statutory revenue for the month is N569.3 billion naira which is N57.9 billion less than the N627.14 billion shared in August.

The minister, who presided over the FAAC meeting, stressed the need for the three tiers of government to save.

She also challenged members of the committee to maintain transparency and instil a saving culture for the rainy day in various states.

The next FAAC meeting is expected to hold during the National Council of Finance and Economic Development Conference in Kaduna, scheduled for Wednesday, November 28.

The report of the Committee on the Excess Crude Account is expected to be presented at the meeting.