Allocation Dips By N233.6bn As FG, States, LGs Share N547.3bn

The Federation Account Allocation Committee on Wednesday allocated the sum of N547.3bn to the three tiers of government.

The allocation which is for the month of May was done through a Virtual Conferencing, chaired by the Permanent Secretary, Federal Ministry of Finance, Budget and National Planning, Dr. Mahmoud Isa-Dutse.

The May allocation when compared to the N780.0bn shared in April represents a decline of N233.6bn or 29.9 per cent.

From the amount distributed in May, the Federal Government received N219.79bn, the States shared N152.436bn, while the sum of N114.09bn was distributed among the 774 Local Government Councils.

In addition,  the oil producing states got the sum of N37.02bn based on the 13 per cent derivation principle.

 
A communique issued at the end of the meeting put the cost of revenue collection that was refunded to the Federal Inland Revenue Service as well as the allocation to the North East Development Commission at N23.95bn.

In terms of Value Added Tax income,  the communique put the gross revenue generated from VAT for the month of May at N103.87bn as against the N94.49bn in the preceding month of April.

This, it said, represented  an increase of N9.37bn. 

In distributing the VAT revenue, the Federal Government got N14.49bn, States N48.3bn, Local Government Councils got N33.81bn, while cost of collection to the FIRS was put at N7.27bn.

During the period, revenue items such as Petroleum Profit Tax, Import Duty and Value Added Tax recorded increases, while Companies Income Tax, Oil Royalty and Excise Duty recorded sharp decreases in performance.