March 2022: FAAC Allocation Rises 20.9% as FG, Others Share N695.03bn

By Adedapo Adesanya

The Federation Accounts Allocation Committee (FAAC) has shared N695.03 billion to the three tiers of government as revenue for March 2022.

This is coming amid plans by the Nigerian National Petroleum Corporation (NNPC) Limited to deduct N242.53 billion for subsidy after the government suspended the planned removal from July 2022.

On Tuesday, FAAC held a virtual conference and according to the FAAC Director Information, Mr Olajide Oshundun, the amount disbursed this month was 20.9 per cent higher than last month, which was N574.7 million.

The amount generated last month and shared this month was inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Non-Mineral Revenues and Excess Bank charges.

From the FAAC allocation for this month, the Federal Government received N236.177 billion, the states received N190.007 billion, and the Local Government Councils got N140.612 billion.

The current nine oil-producing states received N23.750 billion as derivation (13 per cent of Mineral Revenue) and Cost of Collection received N23.989 billion and Transfer/ Refunds got N80.498 billion.

Mr Oshundun noted that the Gross Revenue available from the Value Added Tax (VAT) for February 2022 was N177.873 billion as against N191.222 billion distributed in the preceding month of January 2022, resulting in a decrease of N13.349billion.

The distribution is as follows; Federal Government got N24.845 billion, the states received N82.818 billion, Local Government Councils got N57.972 billion, while Cost of Collection to FIRS and NCS got N7.115 billion and Allocation to the NEDC project received N5.123 billion.

“The distributed Statutory Revenue of N429.681billion, received for the month was higher than the sum of N396.432 billion received in the previous month by N33.249billion, from which the Federal Government was allocated the sum of N165.248 billion, states got N83.816 billion, LGCs got N64.618 billion, Derivation (13% Mineral Revenue) got N23.750 billion and Cost of Collection received N16.874, while Transfers and Refund got N75.375billion,” the communique stated.

It also revealed that Petroleum Profit Tax (PPT) increased significantly, while Oil and Gas Royalties increased marginally.

However, Import and Excise Duties, Companies Income Tax (CIT) and Value Added Tax (VAT) recorded considerable decreases.

It was further disclosed that total revenue distributable for the current month was drawn from Statutory Revenue of N429.641billion, Value Added Tax (VAT) of N177.873 billion, Excess Bank Charges Recovered of N7.479 and Non-Mineral Revenues of N80.000billion.

The balance in the Excess Crude Account as of March 22, 2022, stood at $35.371 million.