CEM REPORT | Federal, State and Local Governments received the sum of N2.181trn from the Federation Account Allocation Committee (FAAC) in the first quarter of 2022 from the revenue generated in December 2021, January and February 2022.
According to the monthly Reports recently released by the Nigerian Bureau of Statistics, the amount disbursed comprised of N 1.413trn from the Statutory Account, N 185.15bn from Exchange Gain difference, and N472.48bn from Valued Added Tax (VAT).
The Federation Account Allocation Committee (FAAC) disbursed the sum of N722.38bn to the three tiers of government in March 2022 from the total revenue generated in February 2022. This amount is an improvement of 4.09% from the N692.86bn disbursed in February and 5.75% reduction from the January disbursement of N766.47bn.
The amount disbursed in March comprised N457.03bn from the Statutory Account, N80.00bn from Non-oil Excess Account, N7.48bn as Excess Bank Charges, and N177.87bn from Valued Added Tax (VAT).
The Federal Government received a total of N236.18bn from the N722.38bn, States and Local Governments received a total of N190.01bn and N140.61bn respectively. The sum of N51.10bn was shared among the oil-producing states from the 13% derivation fund.
The Revenue generating agencies comprising Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Department of Petroleum Resources (DPR) received N9.46bn, N10.03bn, and N4.50bn respectively as cost of revenue collections. Further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that a total net amount of N111.95bn was disbursed to the FGN consolidated revenue account; N4.01bn was received as a share of derivation and ecology; N2.01bn as stabilization fund; N6.74bn for the development of natural resources; and N5.60bn to the Federal Capital Territory (FCT) Abuja.
Government revenue has dwindled in recent months following reduction in volume of oil produced by the country, due to array of issues confronting the oil sector. These issues include oil theft, withdrawal of major oil companies, lack of investment in new fields and many others.
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Debt servicing has also consumed a chunk of our revenue as debts continue to rise following increased borrowing in recent years
However, it is noteworthy that the federal government has equally stepped up revenue generation with increased VAT to 7.5% and introduction of stamp duty and tax on beverages.