Nigeria Suffers Statutory Revenue Loss Of N227.265 Billion In March

Nigeria has lost a statutory distributable revenue amounting to N227.265 Billion in the month of March, 2020.

The indication emerged on Friday, after a virtual meeting of the Federation Accounts Allocation Committee (FAAC) presided by the Permanent Secretary, Federal Ministry of Finance, Budget and National Planning, Dr. Mahmoud Isa-Dutse.

Although, the reason for the huge revenue loss was not declared, it may not be unconnected with the decline in oil price in international market and lockdown in economic and social activities by the Federal Government in a bid to contain the spread of Coronavirus pandemic.

According to communique released at the end of the meeting, “the distributed Statutory Revenue of N370.411billion received for the month of April, was lower than the N597.676 billion received for the previous month by N227.265 billion.”

Also, the Gross Revenue available from the Value Added Tax (VAT) for April 2020 was N94.495 billion as against the N120.268 billion distributed in the preceding month of March 2020, resulting in a decrease of N25.772 billion.

However, FAAC shared to the three tiers of government, a total sum of  N606.196 billion as federal allocation for the month of April 2020.

From this amount, inclusive of VAT, Exchange Gain, Solid Mineral Revenue, Excess Bank Charges and Excess Oil Revenue, the Federal Government received N169.831 billon, the States received N86.140 billion, Local Government councils got N66.411 billion, while the oil producing states received N32.895 billion as derivation (13% Mineral Revenue).

However, cost of collection/FIRS Refund/ Allocation to North East Development Commission and Transfer to Excess Oil Revenue was N15.134 billion.

In the communiqué issued by the Federation Accounts Allocation Committee (FAAC) at the end of the meeting, indicated that the Gross Revenue available from the Value Added Tax (VAT) for April 2020 was N94.495 billion as against the N120.268 billion distributed in the preceding month of March 2020, resulting in a decrease of N25.772 billion. The distribution is as follows; Federal Government got N13.182 billion, the States received N43.941 billion, Local Government Councils got N30.758 billon.

The distributed Statutory Revenue of N370.411billion received for the month was lower than the N597.676 billion received for the previous month by N227.265 billion.

The communiqué also revealed that Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import and Export Duties, Oil and Value Added Tax (VAT), all recorded decreases.

The total revenue distributable for the current month (including cost of collection to NCS, DPR and FIRS) according to the committee is N606.196 billion.