COVID-19: FAAC shares N780bn for March amid decline in oil revenue
In spite of the sharp drop in the nation’s oil revenue, and the economic impact of the COVID-19 pandemic, the Federation Accounts Allocation Committee (FAAC) on Wednesday shared a total sum N 780.9 billion for March 2020 Federation Account Revenue.
This was confirmed in a statement from the office of the Accountant-General of the Federation at the end of the virtual FAAC meeting of the representatives of the federal, states and local governments, along with Federal Capital Territory counterparts.
According to the statement: “The N780.926 billion comprised Statutory Revenue, Value Added Tax (VAT), and Exchange Gain.”
It was also revealed the balance in the Excess Crude Account (ECA) grew a little to $72.221 million.
The gross statutory revenue for the month of March 2020 was put at N 597.676 billion.
This was higher than the N466.058 billion received in February 2020 by N131.618 billion.
Value Added Tax (VAT) yielded gross revenue of N120.268 billion in March 2020 as against N99.552 billion in February 2020, resulting in an increase of N20.716 billion.
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A total of N62.928 billion was available from Exchange Gain in the month under review.
The OAGF also stated that: “The Statement of Accounts indicated that from the total revenue of N780.926 billion, the Federal Government received N264.330 billion.”
Continuing, the Office said: “The State Governments received N181.487 billion, and the Local Government Councils received N135.950 billion.
“The Oil Producing States received N38.751 billion as 13 per cent derivation revenue while the cost of revenue collection by Revenue Agencies and allocation to North-East Development Commission (NEDC) was N160.408 billion.”
According to the Statement of Accounts, the Federal Government received N217.773 billion from the gross statutory revenue of N597.676 billion.
The State Governments received N110.457 billion and the Local Government Councils received N85.158 billion.
The sum of N32.299 billion was given to the relevant States as 13 per cent derivation revenue and N151.989 billion as cost of revenue collection by Revenue Agencies and allocation to NEDC.
The federal government received N16.777 billion from the Value Added Tax (VAT) revenue of N120.268 billion available in the month of March 2020. The State Governments received N55.925 billion, the Local Government Councils received N39.147 billion, while the cost of collection by Revenue Agencies and allocation to NEDC was N8.419 billion.
The Statement confirmed that the Federal Government received N29.780 billion, the State Governments received N15.105 billion, the Local Government Councils received N11.645 billion and the Oil Producing States received N6.452 billion from the total revenue of N62.982 billion available from Exchange Gain.
It also disclosed that in the month of March 2020, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import and Excise Duties, Oil and Gas Royalties and Value Added Tax (VAT) all recorded substantial increases which resulted in the large volume of money shared.
The monthly Federation Account Allocation Committee (FAAC) meeting for the month of April 2020, where the sharing of the March 2020 revenues was discussed, was held through virtual conferencing in line with the physical distancing directive by the Nigeria Center for Disease Control (NCDC).
