Economy

Nigeria’s Value added tax revenue hits N196.175bn 

The Federation Accounts Allocation Committee (FAAC) has shared a total of N675.946 billion to the Federal Government, states, and local government councils as the Federation Account revenue for November, as a total of N196.175 billion Value Added Tax (VAT) gross revenue was generated.

A spokesman for the Office of the Accountant-General of the Federation (AGF), Henshaw Ogubike, disclosed this in a statement on Friday in Abuja.

He explained that a breakdown of the figure was contained in a communique issued at the end of a virtual meeting of FAAC for December.

“The N675.946 billion total distributable revenue comprised distributable statutory revenue of N488.674 billion; distributable Value Added Tax (VAT) revenue of N182.678 billion, Exchange Gain of N4.156 billion and Excess Bank Charges Recovered of N0.438 billion,” he said.

“In November 2021, the total deductions for cost of collection was N30.957 billion, and the total deductions for statutory transfers, refunds and savings was N136.908 billion. The balance in the Excess Crude Account (ECA) was $35.365 million.”

The communique confirmed that from the total distributable revenue of N675.946 billion; the Federal Government received N261.441billion, the state governments received N210.046 billion, and the local government councils received N155.456 billion.

VAT Revenue Surges

Similarly, the sum of N49.003 billion was shared to relevant states as 13 per cent derivation revenue while a distributable statutory revenue of N488.674 billion was available for the month.

“From this, the Federal Government received N231.863 billion, the state governments received N117.604 billion and the local government councils received N90.668 billion. The sum of N48.540 billion was shared to the relevant states as 13 per cent derivation revenue.

“In the month of November 2021, the gross revenue available from the Value Added Tax (VAT) was N196.175 billion. This was higher than the N166.284 billion available in the month of October 2021 by N29.891billion.

“The sum of N5.650 billion allocation to NEDC and N7.847 billion cost of collection were deducted from the N196.175 billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N182.678 billion,” Ogubike said.

From the N182.678 billion distributable VAT revenue, he revealed that the Federal Government received N27.402 billion, the state governments received N91.339 billion and the local government councils received N63.937 billion.

The Federal Government also received N1.946 billion from the total Exchange Gain revenue of N4.156 billion while the state governments and local government councils received N0.986 billion and N0.761 billion respectively.

N0.463 billion was shared to relevant states as 13 per cent derivation revenue.

Of the N0.438 billion excess bank charges recovered, the Federal Government received N0.231billion, the state governments received N0.117billionm, and the local government councils received N0.090 billion.

In November, according to the communique, Petroleum Profit Tax (PPT), Oil and Gas Royalties, Companies Income Tax (CIT) and Value Added Tax (VAT), increased remarkably while Import and Excise Duty increased marginally.

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