FAAC Shares N581.566bn as Revenue for February

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The Federation Accounts Allocation Committee (FAAC) has finally been able to share revenue for February 2020 among the three tiers of Government.

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This comes after the meeting was deadlocked last week following the inability of all parties involved to agree on the amount to be shared.

Reports say the revenue was simply too small and state governments rejected the amount that accrued to them.

The FAAC was however able to share ₦581.566bn among Federal, State and Local Governments for the month of February 2020.

Unlike last week’s meeting, the latest FAAC meeting lasted for just two hours in Abuja.

The entire amount shared was made up of revenue from Statutory Income, Value Added Tax, Exchange Gain as well as income from the Forex Equalisation Account.

The FAAC also announced that Nigeria’s Excess Crude Account has $72.221 million while the gross statutory income for February stood at N466.055, about N59.195bn difference with January’s revenue which stood at N525.253bn.

Revenue from VAT for the month of February was ₦99.552bn against ₦104.758bn for January. Income from Exchange gain stood at ₦0.757 bn, while income from the Forex Equalisation Account was ₦15.199bn.

Issuing a communique at the end of the meeting, the FAAC said the Federal Government received ₦236.118bn, State Governments ₦159.010 bn while Local Government Councils received ₦119.305 bn respectively.

The committee said further that oil producing states received ₦45.310 bn as 13% derivation income while revenue generating agencies got ₦21.822bn being the cost of revenue collection on behalf of the government.

Excerpts from the communique read:

A breakdown of the distribution showed that from the gross statutory revenue of ₦466.058 billion, the Federal Government received ₦214.915 billion, the State Governments received ₦109.008 billion and the Local Government Councils received ₦84.040 billion.

The Oil Producing States received ₦43.242 billion as 13% derivation revenue and the Revenue Generating Agencies received ₦14.853 billion as cost of collection.

From the Value Added Tax (VAT) revenue of ₦99.552 billion, the Federal Government received ₦13.888 billion, the State Governments received ₦46.292 billion, the Local Government Councils received ₦32.404 billion and the Revenue Generating Agencies received ₦6.969 billion as cost of revenue collection.

The Exchange Gain revenue was ₦0.757 billion and the Federal Government received ₦0.350 billion, the State Governments received ₦0.178 billion, the Local Government Councils received ₦0.137 billion and the Oil Producing States received ₦0.092 billion.

The Forex Equalization Account revenue was ₦15.199 billion. The Federal Government received ₦6.966 billion, the State Governments received ₦3.533 billion, the Local Government Councils received ₦2.724 billion and the Oil Producing States received ₦1.976 billion

The FAAC finally revealed that petroleum profit tax, companies Income tax, import and excise duties, oil and gas royalties and value added tax all suffered significant reduction for the month of February 2020.

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