Finally, FAAC shares N671.9bn to FG, states, LGAs for October, 2021

Following the respite in the months-long impasse between the Federal Government and state of the federation over Paris Club Refund deductions on the accounts of the latter, the Federation Accounts Allocation Committee (FAAC), Wednesday shared to the three tiers of government a total sum of N671.910 billion as allocation for the month of October, 2021.

Minister of Finance, Zainab Ahmed

At its meeting held at the end of National Council on Finance and Economic Development conference Lagos, the various tiers of government shared the amount which is inclusive of Value Added Tax (VAT), Augmentations, Exchange Gain and Non-Oil Mineral Revenue.

While the Federal Government received N284.292 billion, states received N209.838 billion, with the Local Government Councils getting N156.282 billion. Oil producing states also received N21.498 billion as derivation (13% of Mineral Revenue).

A communiqué 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 October, 2021 was N166.284 billion as against N170.850 billion distributed in the preceding month of September, 2021, resulting in a decrease of N4.566 billion.

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According to a statement by the Acting Director of Information, Oshundun Olajide the distribution is as follows: Federal Government got N23.227 billion, the States received N77.422 billion, Local Government Councils got N54.195 billion, Transfers and Refunds received N4.789 and Cost of Collection got N6.651 billion.

The distributed Statutory Revenue of N407.864 billion received for the month was lower than the N692.283 billion received for the previous month by N284.419 billion, from which the Federal government received N180.551 billion, States got N91.578 billion, LGCs got N70.603 billion, Derivation (13% Mineral Revenue) got N21.118 billion, Cost of Collection received N17.940 billion and Transfers and Refunds got N26.075 billion.

The Communiqué also disclosed the Augmentations of N100 billion as the Federal Government received N52.680 billion, State Governments got N26.720 billion, LGCs received N20.600 billion, derivation (13% of Mineral Revenue) got N0.000, Costs of Collection, Transfers and Refunds got N0.000 accordingly. Also the N50 billion from Non-Oil Revenue was shared as follows: Federal Government received N26.340 billion, State Governments got N13.360 billion, LGCs got N10.300 billion, Derivation (13 % of Mineral Revenue) received N0.000 billion, while Costs of Collection, Transfers and Refunds got N0.000 accordingly.

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The communiqué also revealed that Companies Income Tax (CIT), Petroleum Profit Tax (PPT), and Oil and Gas Royalties decreased considerably. There was a slight decline in Value Added Tax (VAT), while Import and Excise Duty, increased marginally.

The communiqué however disclosed that total revenue distributable for the current month inclusive of Gross Statutory Revenue of N363.849 billion, Value Added Tax (VAT) of N154.849 billion, and Exchange Gain of N3.217 billion, Augmentations of N100 billion and N50 billion from Non-Oil Mineral Revenue bringing the total distributable revenue to N671.910 billion.

The balance of Excess Crude Account (ECA) as at today stands at $60.860 million.

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It would be recalled that Nigeria Governors’ Forum (NGF), had accused the Attorney-General of the Federation (AGF) and Minister of Justice, Abubakar Malami SAN, of working against the public’s interest by insisting on the payment of $418 million to private consultants from the accounts of state governments.

The consultants are claiming a percentage of Paris Club refunds as payment for services allegedly rendered to the states and local government by way of loan cancellation.

In a statement signed by the spokesman of the Office of the Attorney-General of the Federation, Umar Gwandu, penultimate Friday, Malami suggested the states and local governments had acted in bad faith for taking the case to court.

The deductions were ratified by several court judgements, the AGF said and the Federal Government only had to step in to avoid forfeiting any of its assets since it was also a defendant in the lawsuits against the states.

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