Finance

Oil-producing States Receive N35bn Allocation as FG, States, LGs Share N699bn in December

The sum of N699.824 billion was allocated to the three tiers of government in December, 2021, the Federation Accounts Allocation Committee (FAAC) says.

It further disclosed that the oil-producing states in the country received N35.297 billion as 13 percent derivation revenue.

A communiqué issued at a virtual meeting of FAAC for January 2022 revealed the above.

In its breakdown, the federal government got the sum of N279.457 billion, the state governments received N221.190 billion, and the local government councils were given N163.879 billion which amounted to N699.824 billion.

The North-east Development Commission (NEDC) also got an allocation of N5.796 billion.

According to the communique, the total distributable revenue of N699.824 billion is made up of 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 FAAC recorded an increase of N5.080 billion in December as its gross revenue obtained from the value-added tax was N201.255 billion compared to the N196.175 recorded in November.

“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 stated.

The statement further showed records of an increase in companies’ income tax (CIT) and value-added tax (VAT), while petroleum profit tax (PPT) and oil and gas royalties clearly decreased. Also, it was recorded that import and excise duties decreased marginally.

It explained that the Federal government got 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 while N0.477 billion was shared to oil-producing states as 13 percent derivation revenue.

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