There was sharp decrease in the revenue generated for the country in July as Nigeria recorded decline in the Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Value Added Tax (VAT) as well as Import and Excise Duty.
This is as the federal, states and local governments shared N760.717 billion as revenue for July 2021.
A communique issued at the end of the virtual meeting of the Federation Account Allocation Committee (FAAC) for August 2021 indicates that in the month of July 2021, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), and Oil and Gas Royalties recorded significant decreases while Value Added Tax (VAT), and Import and Excise Duty decreased marginally.
The communique, however, did not state the causes of the decline in the generated revenue.
The N760.717 billion shared comprised of statutory revenue of N617.705 billion; Value Added Tax (VAT) revenue of N140.555 billion and Exchange Gain of N2.457 billion.
In July 2021, the sum of N63.501billion was the total deductions for cost of collection, statutory transfers and refunds. The balance in the Excess Crude Account (ECA) was $60.855 million.
- Buhari to leaders: Rid Nigeria of disunity, promote peace
- ‘How CBN intervention can curb inflation’
The communiqué revealed that from the total distributable revenue of N760.717 billion; the Federal Government received N321.226 billion, the state governments received N222.514 billion, and the Local Government Councils received N166.562 billion. The sum of N50.415 billion was shared to the relevant states as 13% derivation revenue.
The distributable statutory revenue of N617.705 billion was available for the month. From this, the Federal Government received N299.004 billion, the state governments received N151.659 billion and the Local Government Councils received N116.922 billion. The sum of N50.120 billion was given to the relevant States as 13% derivation revenue.
In the month of July 2021, the gross revenue available from the VAT was N151.134 billion. This was lower than the N154.465 billion available in the month of June by N3.331billion. The sum of N4.534 billion allocation to NEDC and N6.045 billion cost of revenue collection were deducted from the N151.134 billion gross VAT revenue, resulting in the distributable VAT revenue of N140.555billion.
From the N140.555 billion distributable VAT revenue, the Federal Government received N21.083 billion, the state governments received N70.278 billion and the Local Government Councils received N49.194 billion.
The Federal Government received N1.139 billion from the total Exchange Gain revenue of N2.457 billion. The state governments receive N0.578 billion, the Local Government Councils received N0.445 billion and N0.295 billion was given to the relevant States as 13% derivation revenue.