FAAC Shares N699.824bn, as December Allocation Rises by N23.878bn

The Federation Accounts Allocation Committee (FAAC) yesterday shared a total of N699.824 billion to the federal state and local governments for the month of December 2021.

This represents a N23.878 billion increase over the N675.946 billion distributed in the preceding month of December.

According to a communiqué issued at the end of a virtual meeting of FAAC, the N699.824 billion total distributable revenue comprised distributable statutory revenue of N507.267 billion; distributable Value Added Tax (VAT) revenue of N187.409 billion and Exchange Gain of N5.148 billion.

Total deductions for cost of collection was N30.003 billion while the total deductions for statutory transfers, refunds and savings stood at N36.643 billion.

From the total distributable revenue of N699.824 billion, the federal government received N279.457 billion; states received N221.190 billion and the local government councils received N163.879 billion.

The sum of N35.297 billion was shared to the relevant states as 13 per cent derivation revenue.

Statutory revenue of N507.267 billion was available for the month.

From this, the federal government received N248.885 billion, state governments received N126.238 billion while the local government councils received N97.324 billion.

The sum of N34.820 billion was shared to the relevant states as 13 per cent derivation revenue.

The communique added that the gross revenue available from VAT in the reference month was N201.255 billion. This surpassed the N196.175 billion available in the month of November 2021 by N5.080 billion.

The sum of N5.796 billion allocation to the North East Development Commission (NEDC) and N8.050 billion cost of collection were deducted from the N201.255 billion gross VAT revenue, resulting in the distributable VAT revenue of N187.409 billion.

From the N187.409 billion VAT revenue available for distribution, the federal government received N28.111 billion, state got N93.705 billion while the local government councils received N65.593 billion.

Also, the federal government received N2.461 billion from the total Exchange Gain revenue of N5.148 billion; states received N1.248 billion, local government councils received N0.962 billion and N0.477 billion was shared to the relevant states as 13 per cent derivation revenue.

While Companies Income Tax (CIT) and VAT increased reasonably in December, Petroleum Profit Tax (PPT) and Oil and Gas Royalties decreased significantly.

Import and excise duties also decreased marginally.

The balance in the Excess Crude Account (ECA) as at January 21 stood at $35.368 million.