Three Revenue Sources That Helped Nigerian Gov’t Make ₦680.78 billion From Nigerians In One Months

The Federal, States and Local Governments received ₦680.783 billion from the Federation Account Allocation Committee (FAAC) in May 2022. This includes funds generated from Value-Added Tax (VAT) and Electronic Money Transfer Levy (EMTL).

Amount shared by the three tiers of governments is more than the allocation received in April, which was ₦636.602 billion. This is a 6.7% growth, representing an increment of ₦44.181 billion.

The funds shared last month were drawn from distributable statutory revenue, which contributed ₦385.004 billion, VAT accounted for ₦198.512 billion, with ₦97.267 billion generated from electronic money transfer levy.

A breakdown of the May allocation showed that ₦229.563 billion was given to the Federal Government, ₦241.824 billion was sent to the states, and LGAs received ₦175.942 billion, according to communique covering the period under review.

FG was allocated ₦185.197 billion out of the funds from the distributable statutory revenue, with ₦93.934 billion and ₦72.419 billion going to States and Local Governmenta respectively.

The Communique stated that as part of the 13% derivation revenue, about ₦33.454 billion was sent to relevant states.

It was gathered that the gross statutory revenue of last month fell short of the ₦635.037 billion received in April, as FAAC recorded ₦589.952 billion for the period of May 2022 – a difference of ₦45.085 billion.

Note that while the gross revenue from the Value-Added Tax was ₦213.179 billion in May (₦178.825 billion/April), the distributable figure of ₦198.512 billion was shared among the Nigerian governments.

The Federal Government received ₦29.777 billion, FAAC allocated over N99.256 billion to States, and the local governments got ₦69.479 billion last month, the communique revealed.

In the share of the electronic money transfer levy, the states received the highest, collecting ₦48.634 billion, while the Local Governments got ₦34.048 billion, and the Federal Government went home with ₦14.590 billion.

Meanwhile, the cost of collection of the funds from Nigerians and businesses is ₦36.996 billion, and it was deducted from the allocation, while ₦186.672 billion was reported as total deductions for transfers and refunds.

At the end of May, $35.777 million was the balance of the excess crude account (ECA).