₦1.15tn February FAAC earnings means wealthier FG, states and 774 local councils
Just in time for the gradual recovery of the Naira, the tripartite sorting of the Federal Government, the state sub-nationals and their local councils have enjoyed a substantial increase in their income in February.
Out of ₦2.33trillion that went into the federation account, the sum of ₦1.17trillion came from deductions and savings, including the cost of collection, transfers, interventions, refunds and savings of ₦250billion.
In the end, the Federation Account Allocation Committee (FAAC) delivered a benefit amounting to ₦1.15trillion sent out to the three tiers of government to run their services.
FAAC’s Mohammed Manga, the Director, Press and Public Relations, following the committee’s meeting about their February finance on Thursday gave all the data.
The quorum, which was led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, recorded an increase of ₦460.49billion output compared to ₦39.76billion lesser January Value Added Tax (VAT) remittances.
It turns out that the ₦1.15trillion that was shared with the arms was generated from a gross figure statutory revenue of ₦1.19trillion, which also surpassed January by ₦40.62billion.
There are special benefits for the mineral-rich sub-nationals, such as the oil-producing ones who received ₦166.24billion as derivation fund.
A distribution breakdown of the ₦1.15trillion February income goes like ₦352.41billion to the Federal Government as the states munched ₦366.95billion, leaving the local government areas with ₦267.15billion to spend.
From the ₦101.349billion distributable statutory revenue, the Federal Government got ₦7.351billion, states ₦3.729billion and local governments, ₦2.875billion.
Out of ₦87.394billion derived from minerals, the relevant states got 13 per cent of the value and that is also good.
The results mean that the incomes are bound to maintain their rise in the coming months just like policymakers earlier predicted. They contend that their cost-saving move of removing fuel subsidies would soon start to yield benefits due to money that was previously tied up being used for investments in different ways and areas of the economy.
Seeing this through has yielded more returns from companies paying tax. That encouraged ₦428.806billion as the distributable VAT revenue for February. Precisely ₦64.321billion went to the Federal Government, states got ₦214.403billion and the local councils were content with ₦150.082billion.
After ₦15.157billion Electronic Money Transfer Levy (EMTL) was divided, the Federal Government ended up with ₦2.274billion; states scooped ₦7.578billion and the local governments cleared the ₦5.305billion remnant.
In the midst of it all, the view suggests the latest income is only scratching the surface with more revenue plans lying ahead.
