The Nigeria National Petroleum Corporation (NNPC) has kept its word, making zero remittance to the Federation Account Allocation Committee (FAAC) for the month of May, 2021.
Our correspondent observed that unlike in previous schedules, NNPC’s column showing what the corporation remitted to FAAC was blank.
“We didn’t see anything from NNPC for the month of May, but we received some money from other oil and gas sources,” a source at FAAC admitted to The Nation.
The agencies that remit revenues to FAAC include NNPC, the Federal Inland Revenue Service (FIRS), the Department of Petroleum Resources (DPR) and the Nigeria Customs Service, among others.
It will be recalled that the NNPC raised the alarm that it might not be able to make remittances to the federation account from May 2021 so that it would be able to meet its obligations to servicing petroleum subsidy.
However for May 2021, the Federation Accounts Allocation Committee (FAAC) on Thursday shared a total of N616.886 billion as April 2021 Federation revenue shared in May to the Federal Government, states and local government councils.
This is about N40 billion less than the agreed monthly distributable revenue.
According to a communiqué issued at the end of the virtual meeting of the Federation Account Allocation Committee (FAAC) for May 2021, “the distributable statutory revenue for the month of April 2021 was N429.733 billion; distributable revenue from the value added tax (VAT) was N164.340 billion; excess bank charges recovered was N0.563 billion; exchange gain was N2.250 billion.”
The communiqué stated that “the sum of N20 billion from non-oil revenue was added as augmentation, bringing the total distributable revenue to N616.886 billion.”
In April 2021, the sum of N79.468 billion was the total deductions for cost of collection, statutory transfers and refunds. The balance in the Excess Crude Account (ECA) stands at $72.413 million.
The communiqué indicated that from the total distributable revenue of N616.886 billion, the Federal Government received N244.011 billion, state governments got N193.432 billion while the local government councils pocketed N143.298 billion.
The sum of N36.145 billion was shared to the relevant states as 13 per cent derivation revenue.
From the distributable statutory revenue of N429.733 billion, the Federal Government received N207.477 billion, state governments received N105.235 billion and local government councils received N81.132 billion.
The sum of N35.890 billion was given to the relevant States as 13 percent derivation revenue.
The Federal Government received N24.651 billion from the distributable Value Added Tax (VAT) revenue of N164.340 billion. State governments got N82.171 billion while the local government councils received N57.519 billion.
From the exchange gain revenue of N2.250 billion, the Federal Government received N1.051 billion, state governments receive N0.533 billion, local government councils received N0.411 billion and N0.255 billion was given to the relevant states as 13 per cent derivation revenue.
The communiqué noted that from the N0.563 billion recovered from excess bank charges, the Federal Government received N0.296 billion; the state governments, N0.150 billion and the local government councils received N0.116 billion.
From the N20 billion augmentation from non-oil revenue, the Federal Government received N10.536 billion, state governments received N5.344 billion while local government councils received N4.120 billion.
According to the Communiqué, in the month of April 2021, Petroleum Profit Tax (PPT) and Excise Duty recorded considerable increases while collections for Companies Income Tax (CIT) and Oil and Gas Royalties decreased significantly.
Also, Value Added Tax (VAT) and Import Duty took a marginal downturn. (The Nation)
