Home Finance CBN, FAAC at loggerheads over probe of federation revenue accounts, FG, States, LG shared N990.189 bn for December

CBN, FAAC at loggerheads over probe of federation revenue accounts, FG, States, LG shared N990.189 bn for December

by Business News Report

Federation Account Allocation Committee says the Central Bank of Nigeria has disregarded its invitations to answer questions on revenues moved to the federation account between January 2006 and December 2021. This was disclosed by FAAC’s post mortem sub-committee at its monthly meeting on Tuesday, January 17, 2023. The sub-committee was providing an update on a proposed review of the FGN/CBN treasury crude account No: 20054141287. Meanwhile Federation Account Allocation Committee (FAAC) shared N990.189 billion to the three tiers of government for the month of December 2022. This is contained in a statement issued by Mr Phil Abiamuwe-Mowete, Director (Information/Press), Ministry of Finance, Budget and National Planning. From the N990.189 billion, the Federal Government received N375.306 billion, the 36 states of the federation and the FCT received N299.557 billion, while the 774 local government councils got N221.807 billion. The N990.189 billion received by the Federal Government comprised Gross Statutory Revenue, Value Added Tax (VAT), Exchange Gain and Electronic Money Transfer Levies (EMTL). In addition, oil-producing states received N93.519 billion as 13 per cent of mineral derivation revenue.

But at the last FAAC plenary meeting held on November 18, 2022; a consultant engaged by the Nigeria Governors’ Forum (NGF), had made a presentation to ascertain whether all revenues generated by ministries, department, and agencies (MDAs) and paid into a designated account with the CBN during the aforementioned period; were fully moved to the federation account for distribution to the federating units as provided by section 162 of the Constitution of the Federal Republic of Nigeria (as amended). The matter was later referred to the FAAC sub-committee with a mandate to review and report back.

Consequently, the PMSC said an ad hoc committee was constituted to handle the assignment. It noted that all the members of the ad hoc committee attended the inaugural meeting scheduled for Thursday, December 8, 2022, except CBN which turned down the invitation, stating that “the bank is not answerable to FAAC post mortem sub-committee but the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC)”. “Therefore, another letter signed by the chairman of RMAFC requesting the bank to send appropriate representatives to the meetings of the ad hoc committee to enable the sub-committee proceed with the assignment was sent, but CBN did not respond,” the sub-committee said. The ad hoc committee called for another meeting on Thursday, 12th January, 2022, and a letter of invitation, signed by the chairman of RMAFC was sent to CBN, yet they did not attend. The sub-committee has gone to this length to ensure that CBN attends the meeting because they are critical to the issue, without their participation the assignment would not proceed.

A communiqué issued by FAAC at the end of its meeting on Tuesday indicated that Gross Revenue available from VAT for Dec. 2022 was N250.512 billion. “From the VAT collected, N7.215 billion was allocated to the Northeast Development Commission Project, while the Federal Inland Revenue Service and the Nigeria Customs Service got N10.020 billion as Cost of Collection. From the balance of N233.277 billion, the Federal Government got N34.992 billion; states received N116.639 billion, while local government councils got N81.647 billion. Gross Statutory Revenue of N1136.183 billion was received for the month of December 2022. From this amount, N31.531 billion was given as Cost of Collection and N396.896 billion released to Transfers, Savings and Refunds.

“From the balance of N707.756 billion, N325.105 billion was allocated to the Federal Government; N165.897 billion was allocated to states, while local councils got N127.129 billion. Oil Derivation (13 per cent Mineral Revenue) for oil-producing states got N90.625 billion,’’ it stated. It added that the N24.315 billion received as EMTL was also distributed to the three tiers of government. The Federal Government received N3.648 billion; states got N12.157 billion, while local councils received N8.510 billion. The communiqué stated also that N24.841 billion from Exchange Gain was shared to the Federal Government which got N11.562 billion; states got N5.864 billion, while local councils received N4.521 billion. Oil Derivation (13 per cent of Mineral Revenue) got N2.894 billion.

FAAC also noted that Petroleum Profit Tax, Companies Income Tax and VAT recorded significant increases, while Import Duty decreased considerably. Oil and Gas royalties and excise duty increased marginally, it stated. It stated also that total revenue distributable for December 2022 was drawn from Statutory Revenue of N707.756 billion, VAT of N233.277 billion, Exchange Gain of N24.841 billion, and N24.315 billion from EMTL. This brought the total distributable for December 2022 to N990.189 billion. FAAC stated also that the balance in the Excess Crude Account as at Jan. 17 stood at 473,754.57 dollars

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