As the economy continues to wobble from the effect of the COVID 19 pandemic coupled with dwindling oil revenue, the Federation Accounts Allocation Committee (FAAC) disbursement to the three tiers of government went down by N174b in May from the revenue generated in April.
In April, the three tiers of government shared N780.926 billion from the revenue generated in March, however, the three tiers of government shared N606b.
According to a statement on Friday, Hassan Dodo, Director Of Information In The Ministry Of Finance, Budget And National Planning, the meeting held virtually and was chaired by Mahmoud Isa-Dutse, the Permanent Secretary in the ministry.
He said the amount shared included value-added tax (VAT), exchange gain, solid mineral revenue, excess bank charges, and excess oil revenue.
According to Dodo, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duties, and VAT, all recorded decreases.
He explained that the federal government received N169.831 billion, the states got N86.140 billion while the local government councils had N66.411 billion and the oil-producing states received N32.895 billion as 13 percent derivation.
The director, however, disclosed that the cost of collection of Federal Inland Revenue Service (FIRS) Refund and Allocation to North East Development Commission and Transfer to excess oil revenue was N15.134 billion.
“The gross revenue available from the VAT for April 2020 was N94.495 billion as against the N120.268 billion distributed in the preceding month of March, resulting in a decrease of N25.772 billion.
“The distribution is as follows; the federal government got N13.182 billion, the states received N43.941 billion, local government councils took N30.758 billion.
“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.”
Recall that last month, the FAAC receipts plummeted drastically. This development prompted President Muhammadu Buhari to approve a withdrawal of $150m from Nigeria’s Sovereign Wealth Fund(SWF) to augment for the shortfalls.
Experts project that the coming months might be economically challenging for many. This has compelled many states to trim down their budgetary provisions for projects execution and recurrent expenditure , including Ekiti State, one of Nigeria’s states with the least receipts from FAAC.
