Some states are set to face fresh economic challenges as the Federal Allocation has dropped to a four-year low.
In January, the Federation Accounts Allocation Committee shared the sum of N574.66bn to the Federal Government, states and local government councils. The amount shared in January is lower than the N699.82bn disbursed in December 2021.
This fall in FAAC allocations follows the Federal Government’s announcement of its plans to deduct N950bn for the payment of fuel subsidy from allocations due to states in 2022, NNL reports.
Details of the allocations for January are contained in a communiqué issued at the end of a virtual meeting of the FAAC for February 2022 released on Thursday night.
The N574.66bn total distributable revenue comprised distributable statutory revenue of N291.40bn, distributable Value Added Tax revenue of N178.06bn and Exchange Gain of N5.202bn and Non-Mineral Revenue of N100bn.
In January 2022, the total deduction for the cost of collection was N25.421bn and the total deductions for statutory transfers, refunds and savings was N92.767bn. The balance in the Excess Crude Account was $35.36m.
The communiqué confirmed that from the total distributable revenue of N574.668bn; the Federal Government received N204.580bn, the state governments received N179.251bn and the local government councils received N131.878bn. A total of N58.959bn was shared to the relevant states as 13 per cent derivation revenue.
The distributable statutory revenue of N291.4bn was available for the month. From this, the Federal Government received N122.749bn, the state governments received N62.260bn and the local government councils received N48bn. The sum of N58.391bn was shared with the relevant states as 13 per cent derivation revenue.
In January 2022, the gross revenue available from the Value Added Tax was N191.2bn. This was lower than the N201.255bn available in December 2021 by N10.033bn.
The sum of N5.507bn allocation to NEDC and N7.649bn cost of collection were deducted from the N191.2bn gross VAT revenue, resulting in the distributable VAT revenue of N178.06bn.
According to the communiqué, in January 2022, Companies Income Tax, Petroleum Profit Tax, and Oil and Gas Royalties decreased significantly while Value Added Tax, Import and Excise Duties decreased marginally. Continue Reading