The Federation Accounts Allocation Committee (FAAC) shared a total of N1.9 trillion as Federally collected revenue in favour of the three tiers of government in the second quarter of the year (Q2’21).
Vanguard Public Finance quarterly analysis of data from FAAC and the National Bureau of Statistics, NBS, reports for April to June 2020/2021 showed that allocations in Q2’21 fell by 2.0 per cent compared to N1.93 trillion distributed in Q2’20.
The N1.9 trillion total allocations comprised distributable statutory revenue of N1.32 trillion; distributable Value Added Tax (VAT) revenue of N498.74 billion and Exchange Gain of N6.9 billion.
The breakdown shows that total distributable revenue in Q2’21 grew marginally by 8.0 per cent from N1.26 trillion in Q2’20, while VAT revenue grew sharply by 57 percent from N318 billion. However, Exchange Gain fell more sharply by 94 per cent from N118.75 billion.
In Q2’21, the sum of the total deductions for cost of collection, statutory transfers and refunds also rose exponentially by 473.7 percent to N283.4 billion from N49.36 billion in Q2’20.
The balance in the Excess Crude Account (ECA) was $72.4 million as at end of Q2’21 period.
Further details showed that from the total distributable revenue of N1.9 trillion; the Federal Government received N698 billion, down by six percent from N739.2 billion in Q2’20; the State Governments received N567.3 billion, up by 63 per cent from N348.1 billion in Q2’20; and the Local Government Councils received N502.1 billion, up by 34 per cent from N375.4 received in Q2’20.
The sum of N103.1 billion was shared amongst the beneficiary States as 13 per cent derivation revenue. This represents a 20 per cent decline when compared to N128.7 billion they collected in Q2’20.
Further details showed that from the N498.74 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N75.54 billion, the State Governments received N250.8 billion and the Local Government Councils received N172.4 billion in the review period.
The Federal Government received N3.25 billion from the total Exchange Gain revenue of N6.9 billion. The State Governments received N1.6 billion, the Local Government Councils received N1.3 billion and N1 billion was given to the relevant States as 13 per cent derivation revenue in Q2’21.