FAAC shares N68.572 billion to 10 oil-producing states as 13 percent derivation revenue in November

Oredola Adeola

The Federation Account Allocation Committee (FAAC) has shared the total sum of
N68.572 billion to the ten oil-producing states as 13 percent derivation revenue, out of a total of N902.053 billion November revenue shared among the three tiers of government.

This was revealed on Thursday by Phil Abiamuwe-Mowete, the Ministry of Finance, Budget, and National Planning spokesperson, as part of a communiqué issued at the end of the FAAC meeting for December 2022.

EnergyDay’s check showed that the N68.572 billion derivation received by the oil-producing states has brought the revenue received by the states to about N694 billion, paid so far by the Federal Government from the Federation Account between 2021 and 2022.

Analysis however showed that the sum received by the states for December 2022, is N42.344bn higher than the total sum of N26.228 billion received by the states in November 2022.

Meanwhile, the communiqué by FAAC established that the total revenue of N902.053 billion was drawn from the statutory revenue of N681.079 billion, Value Added Tax (VAT) of N202.839 billion, exchange gain of N7.164 billion, and N10.971 billion from electronic money transfer levy revenue(EMTL) for November 2022.

The communiqué issued indicated that the gross revenue for oil and gas royalties and petroleum profit tax recorded significant increases, while import and excise duties increased marginally, whereas gross revenue from the November Value Added Tax(VAT) and company’s income tax decreased considerably by N11.216 billion from was earned in October 2022.

Meanwhile, the Excess Crude Account (ECA) balance, as of December 15, stood at $473,754.57.

FAAC also noted that the gross statutory revenue of N681.079 billion distributed was higher than the N622.270 billion received in the previous month.

Out of this amount, the federal government received N323.094 billion, the 36 states and FCT got N163.878 billion, while LGAs received N126.343 billion. The sum of N67.765 billion was shared with the relevant states as 13 percent derivation revenue.

The federal government received N30.426 billion, state governments received N101.420 billion, and local governments: N70.994 billion from the N202.839 billion VAT revenue.

The N7.164 billion exchange gain revenue was distributed as follows: the federal government: N3.349 billion; state governments: N1.699 billion; LGAs: N1.309 billion; while N0.807 billion was given to oil-producing states as 13 percent derivation revenue.

The oil and gas Royalties and Petroleum Profit Tax (PPT) recorded a significant increase in revenue in November 2022.

Concerned Nigerians and citizens of the affected states have continued to criticise the Governors of the oil-producing states for the gross mismanagement of the derivations.

The Niger Delta states receiving oil derivation funds monthly include Abia, Akwa Ibom, Bayelsa, Delta, Edo, Anambra/Kogi Rivers, Ondo, Imo and Cross River states