The Revenue Mobilisation Allocation And Fiscal Commission (RMAFC) has disclosed that the total sum of N5,244,037,636,561.60 accrued into the Federation Account from January to June 2023.
The RMAFC made the disclosure in its monthly report to the Federation Account Allocation Committee (FAAC) by the Central Bank of Nigeria (CBN) under the ‘CBN Federation Account Component Statement’.
The RMAFC Chairman, Mohammed Bello Shehu, in a statement issued on Wednesday, September 20, 2023, said out of the total gross revenue inflows into the Federation Account, the sum of N627,301,922,426.35 was the Nigerian National Petroleum Company Limited JV Petroleum Profit Tax (PPT) due, captured and recorded by the Federal Inland Revenue Service (FIRS), but utilized by the NNPCL for other FGN obligations.
He noted that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted the sum of N823,512,065,893.15 while the FIRS made a gross collection of N3,655,894,989,129.28 but remitted N3,028,593,066,702.93 retaining the difference as cost of collection.
The RMAFC chairman further disclosed that the Nigeria Customs Service (NCS) remitted the sum N764,630,581,539.17.
Shehu added that the NNPCL did not remit any amount into the Federation Account during the period either as profit revenue or other revenues as contained in the Petroleum Industry Act (PIA), 2021, noting that its revenue performance could not be assessed because neither its revenue target was disclosed nor its revenue remittance to the Federation Account was provided.
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He stated that the sum of N1,490,946,180,918.52 was realised as Value Added Tax (VAT) while the sum of N83,024,395,855.89 was realised from the Electronic Money Transfer Levy (EMTL) from which the sum of N3,320,975,834.23 was paid to FIRS as cost of collection.
“Additionally, the FIRS received the sum of N82,031,796,937.01 and N3,320,975,834.23 as cost of collection on PPT/CIT and EMTL collections respectively in the period,” the RMAFC chairman added.
He revealed that on VAT, the FIRS and NCS received the sum of N59,593,164,213.83 as cost of collection within the period under review, adding that the sum of N16,680,990,990.93 was realised from the solid minerals sector.
Shehu noted that total collections from VAT was N1,387,328,862,898.16 which he said was shared to the three-tiers of government in accordance with the approved VAT sharing formula.
“Furthermore, the sum of N1,117,075,572.57 was paid in the month of March 2023 as Consultancy Fee on VAT,” he said.
On the statutory allocations to the three tiers of government, Shehu disclosed that the net sum of N3,069,594,889,669.74 was shared to the three-tiers of government from January to June 2023.
In the area of payment of cost of collection to Revenue Generating Agencies (RGAs) from the Federation Account component, the RMAFC chairman noted that Customs received the sum of N53,524,140,707.73 while the NUPRC received the sum of N33,961,852,403.53 within the period under review.
He added that the sum of N48,105,698,218.35 was paid to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), saying: “This money was collected by NUPRC as penalty on gas flared. Revenues on gas flared penalty used to be Federation Account revenues before the PIA, 2021 which provided that such revenues should be paid 100 per cent to the NMDPRA.”
Shehu further described the statutory deductions which constituted 32.27 per cent of the total gross inflow into the Federation Account in the six month period as superfluous and constitute a drain on the Federation Account.
He disclosed that the sum of N1,692,591,243,111.06 was deducted at source by the OAGF as approved statutory deductions; with a further deduction of the sum of N70 billion by the FIRS under the name of FIRS Priority Projects in the second quarter.
The RMAFC chairman, however, stated that the Nigerian economy at the moment requires some pragmatic measures to enhance distributable revenues for the three tiers of government for the overall development and growth of the country.
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