VAT, CIT revenue ‘push’ December FAAC allocation by N18bn

The three tiers of government shared N619.343 billion as federation allocation from the revenue generated in December 2020.

This is higher than the N601.110 billion shared in December.

Hassan Dodo, director of information at the ministry of finance, budget and national planning, announced this in a statement on Wednesday.

Dodo said the allocation was released after a virtual conference of the federation accounts allocation committee (FAAC).

The committee, in its communique, noted that N619.343 billion shared included the cost of collection to Nigeria Customs Service (NCS), Department of Petroleum Resources (DPR) and the Federal Inland Revenue Service (FIRS).

It also said that the federal government received N218.297 billion, the states received N178.280 billion, while local governments got N131.792 billion.

Oil-producing states received N31.827 billion as derivation (13 percent of mineral revenue) while the cost of collection/transfer and refunds amounted to N59.147 billion.

According to the communique, the gross revenue available from the value-added tax (VAT) for December 2020 was N171.358 billion.

This is N14.572 billion higher than N158.785 billion distributed in November 2020.

“The distribution is as follows; federal government got N23.904 billion, the states received N79.682 billion, local government councils got N55.777 billion while cost of collection by FIRS and NCS is N6.854 billion and allocation to NEDC project amounted to N5.141 billion,” the communique read.

“The distributed statutory revenue for December 2020 is N437.256 billion, higher than that of November by N799 million.”

From this amount, the federal government received N189.451 billion, states got N96.092 billion while LGs collected N74.083 billion. N30.477 billion went into Derivation (13 per cent Mineral Revenue) and N47.152 billion went into Cost of Collection/Transfer and Refund.

The committee observed that company income tax (CIT) and oil and gas royalty increased significantly however, import and excise duties decreased marginally while the petroleum profit tax (PPT) declined substantially.

The total revenue distributable for the current month was augmented with N6.897 billion and N3.482 billion drawn from Forex Equalisation Account and Exchange Gain Difference.

The balance in the excess crude account as of January 20 was $72.411 million.