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Nigeria Records N198.701Billion Revenue Shortfall In September, 2020

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Finance Minister, Zainab Ahmed

By CLEMENT NWOJI, Abuja

Nigeria recorded shortfalls in revenue generation sources in the month of September, 2020 as downturn in economic activities worsens due to aftermath of COVID-19 pandemic.

The declines in revenue include decrease in Value Added Tax (VAT) for September, 2020 which was N141.858 billion as against  N150.230 billion distributed in the preceding month of August, 2020.

Also, the distributed Statutory Revenue of  N341.501 billion received for the month was lower than the N531.830 billion received for the previous month by N190.329 billion.

Further revenue sources which witnessed losses include Oil and Gas Royalty, Companies Income Tax (CIT), Import Duty and Value Added Tax (VAT).

The revenue losses were disclosed at the monthly meeting of the Federation Accounts Allocation Committee (FAAC) meeting held Thursday in Abuja.

The shortfall in revenue, however necessitated argumentation of the distributable amount to the three tiers of government.

It was augmented with the sums of N39.542 billion, N45.000 billion and N72.000 billion from Forex Equalisation, Non Oil Excess Revenue and FGN Intervention respectively, bringing the total Distributable Revenue to N639.901 billion.

According to a communique at the end of the FAAC meeting chaired by the Permanent Secretary, Federal Ministry of Finance, Budget and National Planning, Alh. Aliyu Ahmed, FAAC shared to the three tiers of government, a total sum of  N639.901 billion as federation allocation for the month of September 2020.

From this amount, inclusive cost of collection to NCS, DPR and FIRS, the Federal Government received N255.748 billion, the States received N185.645 billion, the Local Government councils got N138.444 billion while the oil producing states received N36.188 billion as derivation (13% of Mineral Revenue) and Cost of Collection/Transfer and Refunds got N23.876 billion.

The communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting, indicated that the Gross Revenue available from the Value Added Tax (VAT) for September, 2020 was N141.858 billion as against  N150.230 billion distributed in the preceding month of August, 2020, resulting in a decrease of N8.372 billion.

The distribution is as follows; Federal Government got N19.789 billion, the States received N65.964 billion, Local Government Councils got N46.175 billion, while Cost of Collection/Transfer and Refund  got N9.930 billion.

The distributed Statutory Revenue of  N341.501 billion received for the month was lower than the N531.830 billion received for the previous month by N190.329 billion, from which the Federal government received N161.131 billon, States got N81.728 billion, LGCs got N63.009 billion, Derivation (13% Mineral Revenue) got N21.688 billion and Cost of Collection/ Transfer and Refund got N13.946 billion.

The communique also revealed that Oil and Gas Royalty, Companies Income Tax (CIT) decreased significantly. Import Duty and Value Added Tax (VAT) according to the communique also decreased marginally, while  Petroleum Profit Tax (PPT) and Excise Duty recorded increases.

The  communique however disclosed that total revenue distributable for the current month was augmented with the sums of N39.542 billion, N45.000 billion and N72.000 billion from Forex Equalisation, Non Oil Excess Revenue and FGN Intervention respectively, bringing the total Distributable Revenue to N639.901 billion.

The balance in the Excess Crude Account as at 15th October 2020 stands at $72.409 million.

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