FG Amasses Over ₦5trn In 6months- RMAFC

Federation Account Amasses Over ₦5trn In 6months- RMAFC

The Revenue Mobilisation Allocation And Fiscal Commission (RMAFC) stated that a total of ₦5,244,037,636,561.60 has accrued into the Federation Account between January and June 2023.

The figure was included in the Central Bank of Nigeria (CBN)’s monthly report to the Federation Account Allocation Committee (FAAC) under the heading ‘CBN Federation Account Component Statement’.

In a statement issued on Wednesday, the RMAFC Chairman, Mohammed Bello Shehu, stated that of the total gross revenue inflows into the Federation Account, ₦627,301,922,426.35 was NNPCL JV Petroleum Profit Tax (PPT) due, captured and recorded by the FIRS, but used by the NNPCL for other FGN obligations.

According to the report, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted ₦823,512,065,893.15 while the Federal Inland Revenue Service (FIRS) made a gross collection of ₦3,655,894,989,129.28 but remitted ₦3,028,593,066,702.93 while keeping the difference as collection cost.

Shehu stated that ₦627.3 billion of the overall gross income inflows into the federation account was the NNPC JV petroleum profit tax due, captured and recorded by the FIRS, but used by the NNPC for other government commitments.

According to the report, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) submitted ₦823.512 billion, while the FIRS collected ₦3.655 trillion but only paid ₦3.1 trillion, keeping the difference as collection cost.

The announcement further stated that the Nigeria Customs Service (NCS) remitted ₦764.6 3 billion.

It added, however, that NNPC did not remit any amount into the federation account during the period, either as profit revenue or other revenues as specified in the Petroleum Industry Act (PIA), 2021, because its revenue performance could not be assessed because neither its revenue target nor revenue remittance to the federation account was disclosed.

According to the statement, ₦1.49 trillion was realized as Value Added Tax (VAT), while ₦83 billion was realized as electronic money transfer charge, of which ₦3.32 billion was paid to FIRS as cost of collection.

In summary, FIRS received ₦82 billion in petroleum profit tax, ₦3.32 billion in company income tax, and ₦3.32 billion in electronic money transfer revenues throughout the period. According to the report, the FIRS and NCS both took ₦59.59 billion as the cost of collection for VAT during the review period.

Similarly, the data says that the solid minerals sector generated ₦16.68 billion.

Shehu further revealed that total VAT receipts totaled ₦1.387 trillion, which was divided among the three levels of government in compliance with the agreed VAT distribution formula.

“Furthermore, the sum of ₦1.117 billion was paid in the month of March, 2023 as Consultancy Fee on VAT,” the RMAFC chairman said.

In terms of statutory allocations to the three tiers of government, Mr. Shehu said that a net sum of ₦3.069 trillion was distributed to the three tiers of government from January to June 2023.

A breakdown of the numbers on the cost of collection by government revenue-generating agencies revealed that Nigeria customs received ₦53.524 billion during the six-month period, while the NUPRC received ₦33.961 billion.

Similarly, ₦48.105 billion was paid to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) according to the announcement. “The NUPRC collected this money as penalties for 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 percent to the NMDPRA,” he stated.


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