Federation Account gets N5trn in 6 months, says RMAFC boss

Revenue Mobilisation Allocation And Fiscal Commission, RMAFC, on Wednesday, said that the sum of N5.244trillion had accrued to the Federation Account for January to June, 2023.

According to the commission, the figure is as captured in the monthly report to the Federation Account Allocation Committee, FAAC, by the Central Bank of Nigeria, CBN.

Meanwhile, commission described the statutory deductions, which constituted 32.27 percent of the total gross inflow into the Federation Account in the six month period as superfluous and constitute a drain on the Federation Account.

RMAFC Chairman, Mr. Mohammed Shehu, in a statement, said out of the total gross revenue inflows into the Federation Account, the sum of N627.301billion was Nigerian National Petroleum Company Limited, NNPCL JV Petroleum Profit Tax, PPT, due, captured and recorded by Federal Inland Revenue Service, FIRS, but utilised by the NNPCL for other FGN obligations.

According to him, “Nigerian Upstream Petroleum Regulatory Commission, NUPRC, remitted N823.512billion, while FIRS, made a gross collection of N3.655trillion but remitted N3.028trillion, retaining the difference as cost of collection.
“Nigeria Customs Service, NCS, on its part remitted the sum N764.630billion.”

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He added that NNPCL, did not remit any amount into the Federation Account during the period either as profit revenue or other revenues as contained in the Petroleum Industry Act (PIA), 2021, as its revenue performance could not be assessed because neither its revenue target was disclosed nor its revenue remittance to the Federation Account was provided.

The statement further said that N1.490trillion was realised as Value Added Tax, VAT, while the sum of N83.024billion was realised from the Electronic Money Transfer Levy, EMTL, from which N3.320billion was paid to FIRS as cost of collection.

“Additionally, the FIRS received the sum of N82.031billion and N3.320billion as cost of collection on PPT/CIT and EMTL collections respectively in the period.

The report revealed that on VAT, the FIRS/NCS together received the sum of N59.593billion, as cost of collection within the period under review.

The report indicates that the sum of N16.680billion was realised from the solid minerals sector.

The RMAFC Chair further revealed that total collections from VAT netted N1.387billion, which was shared to the 3-tiers of government in accordance with the approved VAT sharing formula.

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“Furthermore, the sum of N1.117billion was paid in the month of March, 2023 as Consultancy Fee on VAT.”

He disclosed that “On the statutory allocations to the three tiers of government, N3.069trillion was shared to the 3-tiers of government in the period January to June, 2023.”

“In the area of payment of cost of collection to Revenue Generating Agencies (RGAs) from the Federation Account component, NCS received N53.524billion, while NUPRC received N33.961billion within the period under review.

“In the same vein, the sum of N48.105billion was paid to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA. This money was collected by NUPRC as penalty on gas flared.

“Revenues on gas flared penalty used to be Federation Account revenues before the PIA, 2021, which provided that such revenues should be paid 100 percent to the NMDPRA.”

The RMAFC Chair described the statutory deductions, which constituted 32.27 percent of the total gross inflow into the Federation Account in the six month period as superfluous and constitute a drain on the Federation Account.

He also disclosed that N1.692billion was deducted at source by the OAGF as approved statutory deductions, with a further deduction of the sum of N70billion by the FIRS under the name of FIRS Priority Projects in the second quarter.

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