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…ECA records zero accretion
From Uche Usim, Abuja
The federal government, 36 states of the federation (and the Federal Capital Territory) and 774 local government areas shared a bumper package of N1.1 trillion as August subvention from the Federation Account Allocation Committee (FAAC). This is probably the highest sum thus shared by the three tiers of government, though analysts say the effect would not be felt by the citizens because of high inflation, currently pegged at 27%.
However, there was zero accretion to the Excess Crude Account (ECA) as the balance remained $473,754.57, the same figure it was last month.
According to the Office of the Accountant-General of the Federation (OAGF), the figure was contained in a communique issued by the FAAC at its September, 2023 meeting.
The N1,100 trillion total distributable revenue comprised distributable statutory revenue of N357.398 billion, distributable Value Added Tax (VAT) revenue of N321.941 billion, Electronic Money Transfer Levy (EMTL) revenue of N14.102 billion, Exchange Difference revenue of N229.568 billion and Augmentation of N177.092 billion.
According to the communique, total revenue of N1,483 trillion was available in August. Total deductions for cost of collection was N58.755 billion, total transfers and refunds was N254.046 billion and savings was N71.000 billion.
Gross statutory revenue of N891.934 billion was received for August. This was lower than the N1150.424 billion received in July by N258.490 billion.
The gross revenue available from the Value Added Tax (VAT) was N345.727 billion. This was higher than the N298.789 billion available in July 2023 by N46.938 billion.
The communique stated that from the N1.100.101 trillion total distributable revenue, the Federal Government received a total of N431.245 billion, the State Governments received N361.188 billion and the Local Government Councils received N266.538 billion.
N26.473 billion comprising 13% of mineral revenue and N14.657 billion (13% of savings from NNPCL), was shared to the relevant States as derivation revenue.
From the N357.398 billion distributable statutory revenue, the Federal Government received N173.102 billion, the State Governments received N87.800 billion and the Local Government Councils received N67.690 billion. The sum of N14.446 billion (13% of mineral revenue) and N14.361billion (13 % of savings from NNPCL) were shared to the relevant States as derivation revenue.
The Federal Government received N48.291 billion, the State Governments received N160.971 billion and the Local Government Councils received N112.679 billion from the N321.941 billion distributable Value Added Tax (VAT) revenue.
The N14.102 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N2.115 billion, the State Governments received N7.051 billion and the Local Government Councils received N4.936 billion.
The Federal Government received N114.445 billion from the N229.568 billion Exchange Difference revenue. The State Governments received N58.048 billion, and the Local Government Councils received N44.752 billion. The sum of N12.027 billion (13% of mineral revenue) and N0.296 billion (13 % of savings from NNPCL) went to the relevant States as derivation revenue.
From the N177.092 billion Augmentation, the Federal Government received N93.292 billion, the State Governments received N47.319 billion and the Local Government Councils received N36.481 billion.
In the month of August 2023, Value Added Tax (VAT), Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased considerably while Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties recorded significant decreases.
