NNPC boosts federation account with N123 bln
Sopuruchi Onwuka
The Nigerian National Petroleum Company (NNPC) Limited has declared remittance of N123 billion to the federation account, enabling the three tiers of government to share N907.054 billion to meet state obligations to citizens in June.
NNPC Chief Financial Officer, Umar Ajiya, told journalists that N81 billion of the remittance came as monthly interim dividend while another 42 billion came as the 40% profit oil accruing from several production sharing contracts managed by the company with commercial operators in the petroleum industry.
Umar Ajiya said the present management of the company is living up to its financial obligation to the government under the terms of the prevailing Petroleum Industry Act (PIA).
The Oracle Today reports that the Federation Account Allocation Committee (FAAC) had earlier declared N907.054 billion for sharing as revenue for the three tiers of government in the country.
In a communiqué issued at the end of the Federation Account Allocation Committee (FAAC) meeting for July 2023 chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein, government mapped out distributable statutory revenue of N301.501 billion, distributable Value Added Tax (VAT) revenue of N273.225 billion, Electronic Money Transfer Levy (EMTL) revenue of N11.436 billion and Exchange Difference revenue of N320.892 billion.
Total deductions for cost of collection were N73.235 billion and total deductions for savings, transfers and refunds was N979.078 billion.
The balance in the Excess Crude Account (ECA) was $473,754.57
The list did not however include remission from the petroleum industry.
From the total distributable revenue of N907.054 billion; the Federal Government received N345.564 billion, the State Governments received N295.948 billion and the Local Government Councils received N218.064 billion. A total sum of N47.478 billion was shared to the relevant States as 13% derivation revenue.
Gross statutory revenue of N1,152.921 billion was received for the month of June 2023. This was higher than the sum of N701.787 billion received in the previous month by N451.134 billion.
From the N301.501 billion distributable statutory revenue, the Federal Government received N146.710 billion, the State Governments received N74.413 billion and the Local Government Councils received N57.370 billion. The sum of N23.008 billion was shared to the relevant States as 13% derivation revenue.
For the month of June 2023, the gross revenue available from the Value Added Tax (VAT) was N293.411 billion. This was higher than the N270.197 billion available in the month of May 2023 by N23.214 billion.
The Federal Government received N40.984 billion, the State Governments received N136.613 billion and the Local Government Councils received N95.629 billion from the N273.225 billion distributable Value Added Tax (VAT) revenue.
The N11.436 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N1.715 billion, the State Governments received N5.718 billion and the Local Government Councils received N4.003 billion.
From the N320.892 billion Exchange Difference revenue, the Federal Government received N156.155 billion, the State Governments received N79.204 billion, the Local Government Councils received N61.063 billion and the sum of N24.470 billion was shared to the relevant States as 13 percent mineral revenue.
According to the communiqué, in the month of June 2023, Companies Income Tax (CIT) recorded tremendous increase. Import and Excise Duties, Value Added Tax (VAT), Oil and Gas Royalties increased significantly, while Petroleum Profit Tax (PPT) and Electronic Money Transfer Levy (EMTL) decreased considerably.
