FAAC Shares N786.161 Billion for May 2023 Amidst Tension Over NNPCL’s Non-Remittance

Ilesanmi AdekanbiJune 23, 2023

1 minute read

The Federation Account Allocation Committee (FAAC), the body responsible for sharing the revenue from the Federation Account to the three tiers of government, has disbursed a total of N786.161 billion for the month of May 2023.

This amount includes the gross statutory revenue of N701.787 billion, the Value Added Tax (VAT) revenue of N270.197 billion, the Electronic Money Transfer Levy (EMTL) of N14.370 billion, and the exchange difference revenue of N0.639 billion.

According to a statement by the Federal Ministry of Finance, Budget and National Planning, the Federal Government received N301.889 billion, the State Governments received N265.875 billion, and the Local Government Councils received N195.541 billion. The oil-producing states also received N22.855 billion as 13 percent derivation fund.

The statement also revealed that there were deductions for the cost of collection amounting to N38.238 billion, as well as deductions for transfers and refunds totaling N163.193 billion.

The balance in the Excess Crude Account (ECA) as of June 22, 2023, was reported to be $473,754.57.

However, the FAAC meeting was overshadowed by the controversy over the non-remittance of funds by the Nigerian National Petroleum Corporation Limited (NNPCL) to the Federation Account.

The FAAC had accused the NNPCL of withholding over N2 trillion from crude sales, royalties and taxes that should have been paid into the Federation Account.

IPMAN to Launch CNG as Affordable and Eco-friendly Fuel at N100 Per Litre

The NNPCL had countered that it was owed over N4 trillion by the Federal Government in subsidy payments, power debt and other charges, and that it would not remit any money until it had recovered its debts.

The FAAC had expressed dissatisfaction with the NNPCL’s explanation and had demanded a full audit of its accounts and operations.

The FAAC had also threatened to take legal action against the NNPCL if it failed to remit its dues to the Federation Account.

The FAAC meeting was attended by representatives of the Federal Government, State Governments, Local Government Councils, Revenue Mobilization and Fiscal Allocation Commission (RMFAC), Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), Department of Petroleum Resources (DPR), and other relevant agencies.