Ten days after the arrest of the Federation’s Accountant General, Mr. Ahmed Idris over an alleged N80 billion scam, the Federation Accounts Allocation Committee shared a total of N636.6 billion in revenue in April 2022 with federal, state, and local government councils.
This was in a statement released after a virtual FAAC meeting in May 2022.
The meeting which was originally scheduled for last week was postponed after the Economic and Financial Crimes Commission arrested Idris for fraud of 80 billion naira.
The investigation by the Federation Accountant General, Mr. Ahmed Idris, into an alleged N80 billion scam had forced the Federal Government to postpone the meeting of the Federation Accounts Allocation Committee from May 2022.
The Ministry of Finance, Budget and National Planning had postponed the meeting last Wednesday in a circular signed by Director, Home Finance, Stephen Okon.
The committee, headed by Finance Minister Ms. Zainab Ahmed, is made up of finance commissioners from the 36 states of the federation; the Accountant General of the Federation, Mr. Ahmed Idris; and representatives of the Nigerian National Petroleum Corporation.
Others are representatives of the Federal Inland Revenue Service; Nigerian personalized service; Revenue mobilization, distribution and tax commission; as well as the Central Bank of Nigeria.
The Federation account is currently managed under a legal framework which allows funds to be shared according to three main components of statutory allocation, distribution of value added tax and allocation made under the principle of derivation.
Under the statutory allocation, the federal government gets 52.68% of the shared revenue; States, 26.72%; and local governments, 20.60%.
The framework also provides for VAT revenues to be allocated as follows: federal government, 15%; States, 50%; and local governments, 35 percent.
Similarly, an additional allocation is granted to the nine oil-producing states based on the 13% derivation formula.
But when the meeting resumed on Thursday, the sum of N656.602 billion in distributable income was split.
This includes distributable statutory income of N461.189 billion, distributable value added tax income of N166.52 billion and N8.891 billion of excess bank charges recovered.
The total deduction for the cost of collection was estimated at N29.6 billion and the total deductions for transfers and refunds were N147.65 billion.
The surplus crude account balance was $35.377 million.
The statement confirmed that out of the total distributable income of N656.602 billion; the federal government received N257.611 billion, state governments received N201.256 billion and local government councils received N149.251 billion.
The sum of N48.485 billion was shared among the affected states as 13% diversion revenue.
A gross statutory income of N635.037 billion was received for the month of April 2022. This was lower than the N933.304 billion received in the previous month of N298.267 billion.
Of the distributable statutory revenue of N461.189 billion, the Federal Government received N217.412 billion, State Governments received N110.275 billion and Local Government Councils received N85.017 billion. The sum of N48.485 billion was shared among the affected states as 13% diversion revenue.