Business

FG taking measures to improve revenue –AGF

November 24, 20190260
FAAC shares N582bn as February revenue to FG, States, LGs By Chika Otuchikere The Federation Accounts Allocation Committee (FAAC) has shared a total of N581.566 billion for February 2020 Federation Account Revenue to the Federal, States and Local Governments in the country. This was announced after a rescheduled meeting of the Federation Account Allocation Committee (FAAC) held in Abuja. on monday. The N581.566 billion comprised Statutory Revenue, Value Added Tax (VAT), Exchange Gain, and revenue from Forex Equalization Account. It was announced that the balance in the Excess Crude Account (ECA) was $ 72.221 million. The gross statutory revenue for the month of February 2020 was N466.058 billion. This was lower than the N525.253 billion received in January 2020 by N59.195 billion. For the month of February 2020, the gross revenue available from the Value Added Tax (VAT) was N99.552 billion as against N104.758 billion in the previous month, resulting in a decrease of N5.206 billion. Exchange Gain yielded a total revenue of N0.757 billion, and revenue from Forex Equalization Account was N15.199 billion. A communique issued by the Federation Account Allocation Committee (FAAC) indicated that from the total revenue of N581.566 billion, the Federal Government received N236.118 billion, the State Governments received N159.010 billion, and the Local Government Councils received N119.305 billion. The Oil Producing States received N45.310 billion as 13% derivation revenue and the Revenue Generating Agencies received N21.822 billion as cost of revenue collection. A breakdown of the distribution showed that from the gross statutory revenue of N466.058 billion, the Federal Government received N214.915 billion, the State Governments received N109.008 billion and the Local Government Councils received N84.040 billion. The Oil Producing States received N43.242 billion as 13% derivation revenue and the Revenue Generating Agencies received N14.853 billion as cost of collection. From the Value Added Tax (VAT) revenue of N99.552 billion, the Federal Government received N13.888 billion, the State Governments received N46.292 billion, the Local Government Councils received N32.404 billion and the Revenue Generating Agencies received N6.969 billion as cost of revenue collection. The Exchange Gain revenue was N0.757 billion and the Federal Government received N0.350 billion, the State Governments received N0.178 billion, the Local Government Councils received N 0.137 billion and the Oil Producing States received N0.092 billion. The Forex Equalization Account revenue was N15.199 billion. The Federal Government received N6.966 billion, the State Governments received N3.533 billion, the Local Government Councils received N2.724 billion and the Oil Producing States received N1.976 billion The communique confirmed that in the month of February 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 decreases.

 

The Accountant General of the Federation Mr.Ahmed Idris has assured that the federal government is putting measures in place to improve the country’s revenue.

Idris gave the assurance while fielding questions from newsmen during the briefing on the Federal Account Allocation Committee meeting for the distribution of the October 2019 revenue to the three tiers of government.

The AGF who noted that the revenues were improving also disclosed that the federal government will soon commence the implementation of the new minimum wage for civil servants.

The difference between the revenue distributed for September and that of October shows that revenue is improving taking into account measures to improve the revenue.

“Government is not unaware of its responsibility. The relevant agencies are talking about the implementation of the minimum wage and very soon implementation will start,” he said.

The Accountant General of the Federal gave a breakdown of the distribution of revenue for October 2019, saying that FAAC shared to the Federal Government, States and Local Government Councils a sum total of N702.058 billion as federal allocation for the month of October 2019.

According to him, from this amount, inclusive of VAT, Exchange Gain and Solid Minerals Revenue, the Federal Government received N295.737billon, representing 52.68%, the States received N192.697 billion representing 26.72%, Local Government Councils got N144.987 billion, representing 20.60%, while the oil producing states received N49.164 billion as 13 per cent derivation revenue.

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