FAAC: FG, states, LGs share N699bn as allocation in December — up by N23bn

The federation accounts allocation committee (FAAC) says it shared N699.824 billion among the three tiers of government for December 2021. 

This represents an increase of N23.878 compared to N675.946 disbursed in the previous month. 

This was contained in a communiqué issued at the end of a virtual meeting of FAAC for January 2022. 

According to the statement, out of the N699.824 billion shared, the federal government received N279.457 billion, the state governments got N221.190 billion, and the local government councils received N163.879 billion. 

On the other hand, N35.297 billion was shared to the oil-producing states as 13 percent derivation revenue.

The total distributable revenue of N699.824 billion comprised distributable statutory revenue of N507.267 billion, distributable value-added tax (VAT) revenue of N187.409 billion, and exchange gain of N5.148 billion.

The communique highlighted that the gross revenue available from the value-added tax was N201.255 billion as against the N196.175 recorded in November, culminating in an increase of N5.080 billion from the previous month. 

The sum of N5.796 billion allocation to the North-east Development Commission (NEDC) and N8.050 billion cost of the collection were deducted from the N201.255 billion gross VAT revenue, resulting in the distributable VAT revenue of N187.409 billion.

From the N187.409 billion VAT revenue available for distribution, the federal government received N28.111 billion, states got N93.705 billion, while the local government councils received N65.593 billion.

It noted that the FG received N2.461 billion from the total exchange gain revenue of N5.148 billion; states received N1.248 billion, local government councils received N0.962 billion and N0.477 billion was shared to oil-producing states as 13 percent derivation revenue.

Furthermore, it indicated that companies income tax (CIT) and value-added tax (VAT) increased reasonably, petroleum profit tax (PPT) and oil and gas royalties decreased significantly — while import and excise duties decreased marginally.

FOR MORE INFORMATION VISIT: https://ksbcjournal.com/