Business Latest

Nigerian govt, states, LGs share N647.35bn for January

Minister-of-Finance-Zainab-Ahmed

The federal, states and local governments on Wednesday shared a total of N647.35 billion as revenue allocation for January.

The Permanent Secretary, Ministry of Finance, Budget and National Planning, Mahmoud Isa-Dutse, who disclosed this to journalists at the end of Federation Account Allocation Committee (FACC) meeting in Lagos, said the figure is 9.63 percent lower than the N716.29 billion shared in December 2019.

He said the reduction in the allocation was due to what was provided by the Nigerian National Petroleum Corporation (NNPC) and the Federal Inland Revenue Service (FIRS) for the month.

Isa-Dutse said the FIRS had disclosed that the shortfall of revenue was due to the reduction in economic activities which usually occurs in January, adding that revenue generation would improve in subsequent months.

He said the N647.35 billion comprised the Statutory Revenue, Value Added Tax (VAT), Exchange Gain, Non-Oil Revenue and Excess Bank Charges recovered.

The permanent secretary said as at February 19, the balance in the Excess Crude Account (ECA) was $71.81 million.

He said: “The gross statutory revenue for the month of January 2020 was N525.25 billion. This is lower than the N600.31 billion received in the previous month by N75.06 billion.

“For the month of January 2020, the gross revenue available from the Value Added Tax (VAT) was N104.75 billion as against N114.80 billion in the previous month, resulting in a decrease of N10.04 billion.

“Exchange Gain yielded a total revenue of N1.04 billion, while the Non-Oil revenue was N16.29 billion.”

According to him, from the N647. 35 billion, the federal government got N267.38 billion, the state governments received N176.92 billion, and the local government councils collected N132.94 billion.

Isa-Dutse said the oil-producing states received N46.19 billion as 13 percent derivation revenue and the revenue-generating agencies got N23.90. billion as cost of revenue collection.

According to a communiqué released by FAAC, a breakdown of the distribution showed that from the gross statutory revenue of N525.25 billion, the federal government received N243.70 billion, the state governments garnered N123.61 billion and the local government councils collected N95.29 billion.

The permanent secretary added: “Also, the Oil Producing States received N46.07 billion as 13 percent derivation revenue and the Revenue Collecting Agencies received N16.56 billion as the cost of collection.

“From the Value Added Tax (VAT) revenue of N104.75, the federal government received N14.61 billion and the state governments received N48.71 billion.

“The local government councils received N34.09 billion and the revenue-generating agencies received N7.33 billion as the cost of revenue collection.

READ ALSO: Carbon is becoming a venture capital portfolio company. But is it prepared for its volatile chemistry?

“From the Exchange Gain revenue of N1.044 billion, the federal government received N0.48 billion, the state governments received N0.24 billion, the local government councils got N 0.19 billion and the oil-producing states got N0.12 billion as 13 percent derivation revenue.

“From the Non-Oil revenue of N16.29 billion, the federal government got N8.58 billion, the State Governments got N4.35 billion, the local government councils got N3.35 billion.”

Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

Join the conversation

Opinions

About the author

Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

Do NOT follow this link or you will be banned from the site!