The three tiers of government yesterday shared N786.161 billion as the federation allocation for the month of May 2023.
OsunDailyNG gathered that the development was disclosed by Federation Account Allocation Committee (FAAC).
In a statement issued by the Director, of Press and Public Relations of the Federal Ministry of Finance, Budget and National Planning, Stephen Kilebi, the N786.161 billion shared by the Federal, State and Local Governments was inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Exchange Difference.
While the Federal Government received N301.889 billion, states got N265.875 billion, Local Government Areas got N195.541 billion, and the oil-producing states received N22.855 billion as derivation (13% of mineral revenue).
According to FAAC, the gross revenue available from VAT for May was N270.197 billion, which was an increase from the N217.743 billion distributed in the preceding month.
Giving a breakdown of the revenue, the committee said the sum of N10.808 billion was allocated for costs of collection and the sum of N7.782 billion was given for transfers and refunds, while the remaining sum of N251.607 billion was distributed to the three tiers of government of which the Federal Government got N37.741 billion, states received N125.804 billion and LGAs got N88.062 billion.
FAAC further explained that the Gross Statutory Revenue of N701.787 billion received for the month was higher than the sum of N497.463 billion received in the previous month of April 2023.
The remaining balance of N519.545 billion was distributed as follows: Federal Government was allocated the sum of N261.686 billion, states got N132.731 billion, LGAs got N102.330 billion, and oil derivation got N22.798 billion.
Also, the sum of N14.969 billion from the Electronic Money Transfer Levy (EMTL) was distributed to the three tiers of government as follows: Federal Government, N2.155 billion; states, N7.185 billion; LGAs, N5.030 billion; and N0.599 billion was allocated for the cost of collection.
Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Import and Excise Duties and VAT all increased significantly, while EMTL decreased marginally.
However, while the balance in the Excess Crude Account (ECA) as of June 22, 2023, stands at $473,754.57, the Nigerian National Petroleum Corporation Limited (NNPCL) did not remit money into the federation account.
It would be recalled that FAAC had on several occasions accused NNPCL of short-changing it by refusing to pay over N2 trillion to the federation account from crude sales, royalties and taxes.
But the NNPC on the other hand had said that the Federal Government owed it over N4 trillion in subsidy payments, power debt and other sundry charges, therefore it would remit until it has recovered the debts.
