The Federation Accounts Allocation Committee (FAAC), has shared a total sum of N695.033 billion to the three tiers of government, as federation allocation for the month of February, 2022.
This indicates a 20.9 per cent increase in allocations to the three tiers of government compared to the N574.668 billion distributed for January 2022. The committee gave the approval at its virtual conference.
According to statement that was issued by the deputy director (information) in the Ministry of Finance, Mr Olajide Oshundun, the approved figure for disbursement includes gross statutory revenue, Value Added Tax (VAT), non-mineral revenues and excess bank charges.
The balance in the Excess Crude Account as at 22nd March, 2022 still stands at $35.371 million, with the authorities not remitting to the account despite oil price increment.
The statement stated that the federal government got N236.177 billion, 36 States and the FCT received N190.007 billion, Local Government Areas got N140.612 billion, while oil producing states received N23.750 billion as derivation (13 per cent of mineral revenue) and cost of collection received N23.989 billion and transfer/refunds got N80.498 billion.
The communiqué issued at the end of the meeting indicated that the gross revenue available from the VAT for February, 2022 was N177.873 billion as against N191.222 billion distributed in the preceding month of January 2022, resulting in a decrease of N13.349 billion.
VAT was shared thusly: federal government: N24.845 billion, states and FCT received N82.818 billion, local government areas: N57.972 billion.
Cost of collection to FIRS and NCS amounted to N7.115 billion, while allocation to NEDC project received N5.123 billion.
“The distributed statutory revenue of N429.681 billion, received for the month was higher than the sum of N396.432 billion received in the previous month by N33.249 billion, from which the federal government was allocated the sum of N165.248 billion, States got N83.816 billion, LGAs got N64.618 billion, Derivation (13 per cent Mineral Revenue) got N23.750 billion and Cost of Collection received N16.874, while Transfers and Refund got N75.375 billion,” Oshundun said.
FAAC said Petroleum Profit Tax (PPT) increased significantly in February. oil and gas royalties also increased marginally. However, Import and excise duties, company income tax and VAT recorded considerable decreases.
It was further disclosed that total revenue distributable for the current month was drawn from statutory revenue of N429.641billion, VAT of N177.873 billion, excess bank charges recovered of N7.479 and non-mineral revenues of N80 billion.