Economy: Nigeria’s Federation Accounts Revenue Decreases By N214.6 Billion In July

The total revenues available for sharing by the Federation Accounts Allocation Committee (FAAC) for the month of July, 2021 decreased by N214.645, according to statistics released Friday.

While the statutory revenues of N601.095 billion received for the month was lower than the N812.409 billion received for the previous month (June, 2021) by N211.314 billion, the revenue from Value Added Tax (VAT) in July, 2021 was N151.134 billion as against N154.465 billion distributed in the preceding month of June, 2021, resulting in a decrease of N3.331 billion

The decreases in revenues reflected the prevailing economic downturn in Nigeria, caused by the spate insecurity and high cost of living.

However, FAAC at its Virtual Conference shared to the three tiers of government, a total sum of N760.717 billion as federation allocation for the month of July, 2021.

From this amount, inclusive of Value Added Tax (VAT) and Exchange Gain, the Federal Government received N325.988 billion, the States received N224.929 billion, the Local Government councils got N168.424 billion while the oil producing states received N41.376 billion as derivation (13% of Mineral Revenue).

The communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting, indicated that the Gross Revenue available from the Value Added Tax (VAT) for July, 2021 was N151.134 billion as against N154.465 billion distributed in the preceding month of June, 2021, resulting in a decrease of N3.331 billion.

The distribution is as follows; Federal Government got N21.083 billion, the States received N70.278 billion, Local Government Councils got N49.194 billion, Alloc. To NEDC received N4.534 and Cost of collection/transfers/ refunds got N6.045 billion.

The distributed Statutory Revenue of  N601.095 billion received for the month was lower than the N812.409 billion received for the previous month by N211.314 billion, from which the Federal government received N303.765 billon, States got N154.074 billion, LGCs got N6118.785 billion, and Derivation (13% Mineral Revenue) got N41.081 billion.

The communique also revealed that Companies Income Tax (CIT), Petroleum Profit Tax (PPT), and Oil and Gas Royalties recorded significant decreases, while Import and Excise Duty, and Value Added Tax (VAT) decreased marginally.

The communique however disclosed that total revenue distributable for the current month inclusive of Gross Statutory Revenue of N617.705 billion, Value Added Tax (VAT) of N140.555 billion, and Exchange Gain of N2.457 billion, bringing the total distributable revenue to N760.717 billion.