The three tiers of government shared over N8.76 trillion in 2022 from the Federation Account Allocation Committee (FAAC) disbursements.
Data available to The Nation showed that the Federal Government received N3.419 trillion from FAAC in 2022. The state governments grossed N2.754 trillion, local government areas pocketed N1.995 trillion while the nine oil producing states received N601.049 billion from FAAC.
The three tiers of federal, states and local governments got their highest allocations in August, with the Federal Government receiving N406.610 billion; state governments, N281.342 billion and local governments N210.617 billion. Interestingly, the oil producing states received N55.515 billion from FAAC in the month which was less than the N59.992 billion they collected in October this year.
Last August, the balance in the Excess Crude Account (ECA) grew by $93,944.45 leaving a total of $470,599.54, which is basically how the account closed for the year. The FAAC communiqué for the month attributed the rise in revenue shared to “Companies Income Tax (CIT), Petroleum Profit Tax (PPT), Excise Duties and Oil and Gas Royalties recording significant increases”.
The amount shared in February 2022 was N574.668 billion the lowest shared for the year. That month, the federal government received N204.580 billion; states governments N179.251 billion; local government councils N131.878 billion and oil producing states under 13 percent derivation principle got N58.959 billion.
Through out last year, the NNPC limited did not make any contribution to the Federation Account from the FAAC funds all beneficiaries.
June 2022 was an interesting month. The Federal Government drew down the Excess Crude Account (ECA) to $376,655.09 from $35.377 million in May 2022. What that means is that in one month the Federal Government withdrew $35,000,344.91from the ECA.
The ECA is supposed to be a savings buffer meant to be used when conditions are dire to bailout the economy.
A total of N1.012 trillion was realised as revenue in June 2022 but only N802.407 was shared after some deductions.
N18.163 billion was deducted from the N1.012 trillion as “13 per cent refund on subsidy, priority projects and Police Trust Fund (1999 to December 2021).
Other deductions are 13 percent refund on subsidy and priority projects (2022); and 13 per cent derivation for Anambra State.
The Federal Inland Revenue Service (FIRS) received its statutory monthly four per cent cost of collection of N452.318 billion while the Nigeria Customs Service received its seven per cent cost of collection of N150.622 billion both for June.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also received N191.066 billion as its statutory four per cent cost of collection for the month. There was an additional refund of a N100 million to the FIRS captured as “refund on cost of collection.
At the end of the FAAC meeting for June revenue, a total sum of N802.407 billion was distributed among the three tiers of government.