VAT, N360 exchange rate ‘push’ March FAAC disbursements by N199bn

Disbursements by the federation accounts allocation committee (FAAC) to the three tiers of government and the relevant agencies increased by N199 billion.

The committee disbursed N780.926 billion as March federation account revenue up from the N581.566 billion shared as February federation account revenue.

The meeting was reported to have held virtually.

In March, TheCable had reported that the committee adopted the N360/$ exchange rate from N307/$ and concessionary rates such as N325 and N330 were abolished.

The Central Bank of Nigeria had eventually announced an exchange rate convergence of N360.

March also marked the second month of implementing the new 7.5% value-added tax.

Henshaw Ogubike, director of information, press and public relations in the Office of Accountant General of the Federation, said the revenue shared comprised statutory revenue, value-added tax (VAT) and exchange gain.

He stated that the gross statutory revenue for the month of March was N597.676 billion higher than the N466.058 billion received in February and January by N131.618 billion.

He disclosed that VAT yielded gross revenue of N120.268 billion in March as against N99.552 billion in February, resulting in an increase of N20.716 billion.

He added that the sum of N62.928 billion was available from exchange gain in the month under review.

Of the disbursements, the federal government received N264.330 billion; states got N181.487 billion, and N135.950 billion was given to local government councils.

“The federal government received N29.780 billion, the state governments got 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,” Ogubike said in a statement.

“In the month of March, petroleum profit tax (PPT), companies income tax(CIT), import and excise duties, oil and gas royalties and VAT all recorded substantial increases.”

The director said the balance in the excess crude account stood at $72.221 million.

Featured image: Ahmed Idris, accountant-general of the federation