Higher Tax, Oil Receipts Raise June Federation Account to N651bn

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By Ndubuisi Francis

The Federation Account Allocation Committee (FAAC) at the weekend shared a total of N651.184 billion as June allocation among the federal, states, local governments and relevant agencies.

This figure is N103.877 million higher than the N547.309 billion shared for May due to higher receipts from taxes and oil revenue.

The global benchmark, Brent, has since recovered to about $43 a barrel from a 21-year low below $16 in April.

A communiqué released by FAAC after its monthly meeting, which was held via virtual conferencing, put gross statutory revenue available at N524.526 billion.

According to the communiqué, the meeting, chaired by the Accountant General of the Federation, Mr. Ahmed Idris, put gross revenue from the Value Added Tax (VAT) at N128.826 billion, while revenue from the Exchange Gain was N42.832 billion.

This brought the total revenue for the month to N696.184 billion.

From this total, the sum of N45 billion was saved in the Excess Non-Oil Revenue Account and the balance of N651.184 billion was shared among the three tiers of government and relevant agencies.

The breakdown shows that the federal government received N227.584 billion from the gross statutory revenue, states received N115.434 billion and the local government councils received N88.995 billion.

The sum of N24.722 billion was given to oil-producing states as 13 per cent derivation revenue .

Similarly, the federal government received N17.971 billion from Value Added Tax (VAT) revenue, state governments received N59.904 billion, local government councils (N41.933 billion), while revenue/relevant agencies received N5.153 billion as cost of collection.

The sum of N3.865 billion was transferred to the North East Development Commission (NEDC).

The communiqué said the federal government received N20.576 billion, states received N10.436 billion, the local government councils received N8.046 billion and the oil-producing states received N3.774 billion from the Exchange Gain revenue.

It added that in June, import and excise duty, VAT, Companies Income Tax, oil and gas royalty recorded significant increases with Petroleum Profit Tax declining.

The balance in the Excess Crude Account (ECA) as at July 16, 2020 was $72.407 million.