The monthly Federation Allocation for March, 2020 was shared on Wednesday by the FG, State Governments and LGs. A total of N780.926 which comprises of Statutory Revenue, Value Added Tax (VAT) and Exchange Gain was shared, according to Statement of Account issued in Abuja by Federal Account Allocation Committee (FAAC).
Due to the spread of Coronavirus (Covid-19) across the country, and the lockdown imposed in Abuja by the President in an effort to contain the spread of the virus, the monthly FAAC meeting was held virtually.
- Read also: Implications of increasing Covid-19 cases
- Covid-19 – Nigeria records 117 new cases, highest daily toll
According to the Account Statement, the excess crude account balance stood at $72.221 million. This represents about a 3.2% increase in first quarter of 2020 compared to the $70 million as at 31st December, 2019.
The N780.926 billion revenue shared, was made up of N597.676 billion from statutory revenue, N120.268 from VAT and N62.928 from Exchange gain.
The statutory revenue in March 2020 rose by N131.618 billion which represents a 28.24% increase from N466.058 recorded in February, 2020.
The Value added tax, (VAT) increased by N20.716 billion, a 20.81% rise from N99.552 billion in February 2020.
Out of the N780.926 billion shared, The Federal Government received N264.33 billion, the State Governments received N181.487 billion and the Local Government Councils received N135.95 billion. The Oil Producing States received 13% derivative which amounts to N38.751 billion.
The cost of revenue collection by Revenue Agencies and Allocation to NEDC (The North-East Development Commission) was N160.408 billion.
The North-East Development Commission (NEDC) is the focal organisation charged with the responsibility to assess, coordinate, harmonise and report on all intervention programmes, and initiatives by the Federal Government or any of its Ministries, Departments and Agencies (MDAs), States; and other Development Partners and for the implementation of all programmes and initiatives for the North East states; Adamawa, Bauchi, Borno, Gombe, Taraba, Yobe, respectively.
The NEDC “among other things, is to receive and manage funds from allocation of the Federal Account and international donors for the settlement, rehabilitation and reconstruction of roads, houses and business premises of victims of insurgency as well as tackling menace of poverty, illiteracy level, ecological problems and any other related environmental or developmental challenges in the North-East states”.
From the N597.676 gross statutory revenue the Federal Government, State Governments and Local Governments received N217.773 billion, N110.457 billion, and N85.158 billion respectively. Total of N32.299 billion was given to the Oil Producing States as the 13% derivation revenue while N151.989 billion was the cost of revenue collection by Revenue Agencies and NEDC.
From the N120.268 billion March 2020 VAT revenue, the Federal Government, State Governments and Local Governments received N16.777, N55.925, and N39.147 billion respectively. While N8.149 billion was the cost of collection by Revenue Agencies and allocation to NEDC
Out of N62.982 billion available from Exchange gain, The Federal Government, State Governments and Local Governments received N29.78 billion, N15.105 billion, and N11.645 billion respectively while the Oil Producing States Received N6.452 billion.
Written by
Ifunanya Ikueze
