List: How FG, States, LGAs Shared N696.965bn Federal Allocation, VAT in August amid Tax Crisis

List: How FG, States, LGAs Shared N696.965bn Federal Allocation, VAT in August amid Tax Crisis

The Federation Accounts Allocation Committee (FAAC) has shared a total of N696.965 billion as federation allocation for the month of August.

Channels TV reported that a Deputy Director of Information at the Office of Accountant General of the Federation (OAGF), Oshundun Olajide, disclosed this in a statement on Thursday, September 23.

Breakdown: FG, States, LGAs Shared N696.965bn Federal Allocation, VAT in August
The Federation Accounts Allocation Committee (FAAC) shares a total of N696.965 billion to the three tiers of government for the month of August. Photo credit: Femi Adesina
Source: Facebook

Here is a breakdown of how the revenue was shared:

Total revenue shared

  1. Federal Government - N289.257 billion
  2. State Governments - N217.183 billion
  3. Local Government Areas - N161.541 billion
  4. Oil-Producing States - N41.376 billion (derivation/13% of mineral revenue)

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Note that the monthly federal allocation is inclusive of Value Added Tax (VAT), Exchange Gain, Excess Bank Charges and Revenue from non-oil.

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Meanwhile, the statement indicates that the gross revenue available from the Value Added Tax (VAT) for August was N166.228 billion.

This comes amid the legal battle between the federal and state governments over whose responsibility it is to collect VAT.

Below is a further breakdown of how the revenue was shared

How the VAT was shared in August

  1. Federal Government - N24.934 billion
  2. State Governments - N83.114 billion
  3. Local Governments - N58.180 billion

Non-oil revenue - N50 billion

  1. Federal Government - N26.340 billion
  2. State Governments - N13.360
  3. Local Governments - N10.3 billion

Distributed Statutory Revenue (N477.504bn)

  1. Federal Government - N236.437 billion
  2. State Governments - N119.924 billion
  3. Local Governments - N92.4456 billion
  4. Derivation (13 per cent mineral revenue) - N28.687 billion

Total

The statement indicated that total revenue distributable for August included gross statutory revenue of N477.504 billion, VAT of N166.228 billion, exchange gain of N2.830 billion, excess bank charges recovered of N0.403 billion, and N50 billion from non-oil revenue.

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This brings the total distributable revenue to N696.965 billion for the month of August.

According to ThisDay, the total amount was N63.752 billion less than the N760.717 billion shared in July 2021, indicating that there was a decrease in the distributable revenue for August.

However, there is a significant increase in VAT and import duty.

Presidency reveals Buhari’s decision on VAT controversy

Meanwhile, the Nigerian presidency has said President Muhammadu Buhari will respect the final verdict on the issue of VAT as decided by the Supreme Court.

The presidential spokesman, Femi Adesina, made the disclosure while speaking during an interview on Arise TV.

Adesina noted that though the case may drag up to the Supreme Court, the Nigerian leader would respect the rule of law. The president's aide sharing his opinion said that the issue of VAT is good because there have been talks about restructuring and fiscal federalism in Nigeria.

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FG's railway business makes N1.08billion amid road insecurity

In another report, the Nigerian Railway Corporation (NRC) made a whooping N1.08 billion in three months as more Nigerians turn to train transport amid rising security in the country.

The amount was generated in the second quarter, which falls between April to June. During this period, a total number of 565,385 passengers was recorded by NRC.

It was gathered that the railway traffic rise rose by 422.3% when the second quarter of both last year (108,238 passengers) and 2021 are compared - this means 457,147 passengers switched to railway transport within one year.

Source: Legit

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