The Federation Account Allocation Committee, FAAC, has shared a total sum of N786.161 billion May 2023 Federation Account Revenue to the federal government, states, and local government councils.
This is according to a communiqué issued at the end of the FAAC meeting for June, chaired by the Accountant General of the Federation, Oluwatoyin Madein.
The communiqué stated that the N786.161 billion total distributable revenue comprised statutory revenue of N519.545 billion and Value Added Tax, VAT revenue of N251.607 billion.
It also contained Electronic Money Transfer Levy, EMTL of N14.370 billion, and Exchange Difference revenue of N639 million.
From that amount, the sum of N10.808 billion was allocated for costs of collection and the sum of N7.782 billion given for transfers and refunds. The remaining sum of N251.607 billion was distributed to the three tiers of government of which the Federal Government got N37.741 billion, states received N125.804 billion and LGAs got N88.062 billion.
Accordingly, the Gross Statutory Revenue of N701.787 billion received for the month was higher than the sum of N497.463 billion received in the previous month of April 2023. From that amount, the sum of N26.831 billion was allocated for cost of collection and a total sum of N155.411 billion for transfers and refunds.
The remaining balance of N519.545 billion was distributed as follows: Federal Government was allocated the sum of N261.686 billion, states got N132.731 billion, LGAs got N102.330 billion, and oil derivation got N22.798 billion.
Also, the sum of N14.969 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three tiers of government as follows: Federal Government, N2.155 billion; states, N7.185 billion; LGAs, N5.030 billion; and N0.599 billion was allocated for cost of collection.
Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Import and Excise Duties and VAT all increased significantly, while EMTL decreased marginally.
While the balance in the Excess Crude Account (ECA) as at June 22, 2023 stands at $473,754.57, the Nigerian National Petroleum Corporation Limited (NNPCL) did not remit money into the federation account.
To shore up the revenue base of the country, President Bola Tinubu has set up an inter-agency committee to resolve the lingering row between the NNPCL and FAAC.
This was disclosed, yesterday, by a Presidency source that said: “Mr President has approved the memo from NNPC to set up a committee to reconcile the crisis between NNPC and FAAC over the failure to remit money into the federation account.”
The Presidency source who spoke on the condition of anonymity said that vested interests had told the president things that were not entirely factual, prompting the national oil company to write that the matter be resolved once and for all.
“Because we want the public to know the truth, NNPC management wrote the President to investigate the matter and Mr President has graciously approved that an inter-agency committee be set up to investigate and reconcile the matter,” the industry source stated.
FAAC had on several occasion accused NNPC of short-changing it by refusing to pay over N2 trillion to the federation account from crude sales, royalties and taxes, while NNPC on the other hand had said that the Federal Government owed it over N4 trillion in subsidy payment, power debt and other sundry charges.
The committee, which is expected to begin sitting today, at the Ministry of Finance, is mandated to reconcile the controversies surrounding the N4.2 trillion debt the Federal Government is owing NNPC and the N2.1 trillion that NNPC is said to have failed to remit to FAAC.
Besides the Ministry of Finance and NNPC, other members of the debt reconciliation committee include the Nigerian Upstream Regulatory Commission (NUPRC), Federal Inland Revenue Service (FIRS), Office of the Accountant General of the Federation (OAGF) and FAAC Post-Mortem Sub-Committee.
The establishment of the committee by the President followed a memo dated June 13, 2023 by the Group Chief Executive Officer, NNPC, Mele Kyari, appealing to him to intervene in the matter.
Dear Readers, Good and credible news reportage is tedious task and requires huge finances.
We are soliciting your Noble support for as low as N1,000 your support would go a long way in assisting us to continue to guarantee our readers quality news.
Bank transfers can be made to:
Account Name: Harvest and Commercial
Bank: Sterling Bank
Account Number: 0078627735