What is implication of dwindling revenue as N11.95 billion shortfall recorded, N682.060 billion shared

Tough and brutish as life is getting in the hinterland and urban areas, with criminality rising and accruing revenues dipping in Nigeria, are harder times than these coming?

In August alone, the Federation Account lost a total of N11.958 billion statutory revenue in the month of August, 2020, compared to July according to statistics released by the Federation Accounts Allocation Committee (FAAC), Thursday.

The committee at the end of its virtual meeting presided by the Permanent Secretary, Ministry of Finance, Dr. Mahmoud Isa- Dutse, said the distributed Statutory Revenue of  N531.830 billion received for the month was lower than the N543.788 billion received for the previous month by N11.958 billion.

However, it shared to the three tiers of government, a total sum of  N682.060 billion as federation allocation for the month of August 2020.

From this amount, inclusive cost of collection to NCS, DPR and FIRS, the Federal Government received N272.905 billion, the States received N197.648 billion, the Local Government councils got N147.422 billion, while the oil producing states received N30.881 billion as derivation (13% of Mineral Revenue) and Cost of Collection/Transfer and Refund got N33.205 billion.

The communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting, indicated that the Gross Revenue available from the Value Added Tax (VAT) for August, 2020 was N150.230 billion as against N132.619 billion distributed in the preceding month of July, 2020, resulting in an increase of N17.611 billion. The distribution is as follows; Federal Government got N20.957 billion, the States received N69.857 billion, Local Government Councils got N48.900 billion, while  Cost of Collection/Transfer and Refund  got N10.516 billion.

The distributed Statutory Revenue of  N531.830 billion received for the month was lower than the N543.788 billion received for the previous month by N11.958 billion, from which the Federal government received N251.948 billon, States got N127.791 billion, LGCs got N98.522 billion, Derivation (13% Mineral Revenue) got N30.881 billion and Cost of Collection/ Transfer and Refund got N22.689 billion.

The communique also revealed that Oil and Gas Royalty, Companies Income Tax (CIT), Import Duty, Excise Duty and Value Added Tax (VAT) increased considerably, while Petroleum Profit Tax (PPT) decreased significantly.

The  total revenue distributable for the current month including Value Added Tax (VAT), according to the committee is N682.060 billion, while the balance in the Excess Crude Account as at 17th September, 2020 was $72.409million.

▪︎ Additional reports by Optimum Times