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Nigeria: Monetary Allocation Among Government Tiers Drops By N8bn

According to Nigeria’s Federation Account Allocation Committee (FAAC), in March 2023, N714.629 billion was distributed across the three levels of government.

The sum reflects an N8.05 billion drop from the N722.68 billion given in February 2023. This was stated by FAAC in a statement following its most recent meeting, which ended on Wednesday in Abuja. The total comprises electronic money transfer fees, value added tax, and gross statutory income.

The overall distributable revenue, according to the committee, was N714.629 billion and was made up of N497.448 billion in distributable statutory income, N202.693 billion in distributable value-added tax revenue, and N14.488 billion in distributable electronic money transfer levy revenue.

The gross income from the value added tax for the month of March 2023 was N218.79 billion; N8.71 billion went toward collection costs, and the remaining N218.79 billion was split among the federal government, states, and local government councils.

The communiqué also showed that while VAT reduced significantly, other taxes such as the petroleum profit tax (PPT), the corporations’ income tax (CIT), the oil and gas royalties, the import and excise charges, and the electronic money transfer levy (EMTL) all rose significantly.

According to FAAC, N638.673 billion in statutory income was received for the month of March 2023. It stated that this was N151.567 billion more than the total of N487.106 billion received in the previous month.

The committee reported that the federal government received N243.564 billion, states received N123.539 billion, and local governments received N95.243 billion from the remaining N497.448 billion distributable statutory revenue.

The Federal Government received N2.173 billion, States received N7.244 billion, Local Government Councils received N5.071 billion, and a total of N0.604 billion was allotted for Cost of Collection, according to the breakdown for EMTL.

It was reported that Value Added Tax declined but the Petroleum Profit Tax, Companies Income Tax, Oil and Gas Royalties, Import and Excise Duties, and Electronic Money Transfer Levy rose.

The statement said, “The Excess Crude Account balance as of April 19, 2023 stands at $473,754.57.”

Glamour Adah.

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