Govt Tiers Share N671.9bn For October As FAAC Revenues Slump By N68bn

Reasons for the huge disparity could be traced to a sharp dip in crude oil production in October, which fell to 1.35 million barrels per day as against 1.40 million bpd output recorded in September. Nigeria is currently battling insufficient funds as it needs to immediately reopen some oil fields forcefully shut down by COVID-19 last year.According to the director, Information, Press and Public Relations, Office of the Accountant General of the Federation, Mr Henshaw Ogubike, the Committee held at its meeting at the end of National Council on Finance and Economic Development conference in Lagos.

From this amount, inclusive of Value Added Tax (VAT), Augmentations, Exchange Gain and Non-Oil Mineral Revenue, the Federal Government received N284.292 billion, the States received N209.838 billion, the Local Government Councils got N156.282 billion while the oil producing states received N21.498 billion as derivation (13% of Mineral Revenue).

The details were contained in a statement that was issued by the Ministry of Finance at the end of the meeting.

From the statement, the gross revenue available from the Value Added Tax (VAT) for October, 2021 was N166.284 billion as against N170.850 billion distributed in the preceding month of September, 2021, resulting in a decrease of N4.566 billion.

From that revenue available for sharing, the federal government got N23.227 billion, the States received N77.422 billion and Local Government Areas got N54.195 billion.  Transfers and refunds received for the month is N4.789. The cost of revenue collection was put at N6.651 billion.