VAT allocation shrinks as FG, States, LGs share N739 billion in September

The three tiers of the Nigerian government have received a federal allocation of N739.965 billion from the Federation Accounts Allocation Committee (FAAC) for September.

Oshundun Olajide, spokesman for the Ministry of Finance, Budget and National Planning made the disclosure Thursday evening. The sharing meeting was held virtually, he said.

“From the N739.965 billion, inclusive of Value Added Tax (VAT), and Exchange Gain, the Federal Government received N301.311 billion, the states received N220.272 billion, the LGs got N164.176 billion.

However, the oil producing states received N54.206 billion as derivation (13 per cent of Mineral Revenue).

The communique issued after the meeting indicated that the Gross Revenue available from VAT for September was N170.850 billion distributed in the preceding month, resulting in a decrease of N7.659 billion.

“The distribution is as follows; the Federal Government got N23.864 billion, the States received N79.548 billion, Local Government Councils got N55.684 billion.

“The distributed Statutory Revenue of N692.283 billion received for the month was higher than the N537.518 billion received in the previous month by N154.765 billion.

“From this amount, the Federal Government received N276.008 billon, states got N139.995 billion, LGCs got N107.930 billion, and Derivation (13 per cent Mineral Revenue) got N53.831 billion.”

The communique further revealed that Petroleum Profit Tax (PPT), Oil and Gas Royalties and Excise Duty increased significantly, while Import Duty and VAT and Companies Income Tax (CIT), decreased marginally.

It, however, disclosed that total revenue distributable for the current month was inclusive of Gross Statutory Revenue of N577.765 billion, VAT of N159.096 billion, and Exchange Gain of N3.104 billion.

However, the balance of the Excess Crude Account as at today stands at $60.860 million.

Credit: PG