Adedapo Adesanya
By Adedapo Adesanya
Allocations to the federal, states and local government from the Federation Accounts Allocation Committee (FAAC) dropped 43 percent in the month of May to N547.3 billion from the N780.9 billion disbursed in the month of April.
This was deduced from figures released by the Ministry of Finance, Budget And National Planning in the latest FAAC committee meeting.
The ministry said the meeting was chaired by the permanent secretary of the ministry, Mr Mahmoud Isa-Dutse.
It further said that the allocation for last month included value added tax (VAT), exchange gain and excess bank charges recovered.
Giving the breakdown, the federal government received N219.8 billion; while all 36 states of the federation received N152.4 billion, with all the 774 local government councils in the country getting N114.1 billion. In addition, the nine oil-producing states received N37.02 billion as derivation (13 percent of mineral revenue).
The Ministry noted that the cost of collection/Federal Inland Revenue Refund/Allocation to North East Development Commission was N23.9 billion.
The Federation Account Allocation Committee at the end of the meeting indicated that the gross revenue available from the VAT for May 2020 was N103.9 billion as against N94.5 billion distributed in the preceding month of April 2020, resulting in an increase of N9.4 billion.
It said the distribution was as follows, federal government got N14.5 billion; states, N48.3 billion, local government councils, N33.8 billion; while derivation got nothing, while cost of collection/FIRS refund/allocation to North East Development Commission (NEDC) was N7.3 billion.
The statement added that the distributed statutory revenue of N413.9 billion received for the month was higher than the N370.4 billion received for the previous month by N43.5 billion.
From this, the Federal government received N191.6 billion; states, N97.2 billion; Local Governments, N74.9 billion; derivation got N33.6 billion; and cost of collection was N16.7 billion.
It was noted that Petroleum Profit Tax, Import Duty and Value Added Tax recorded increases, while Companies Income Tax, Oil Royalty and Excise Duty all recorded decreases in the Month of May.
It stated that the total revenue distributable for the current month including cost of collection to Nigeria Customs Service, Department of Petroleum Resources and FIRS, according to the committee was N547.3 billion.
