The Revenue Mobilisation Allocation and Fiscal Commission says over N5 trillion accrued into the Federation Account in the first six months of the year.
RMAFC chairman, Mohammed Bello Shehu said N627 billion of the revenue came from the Nigerian National Petroleum Company Limited’s Joint Venture Petroleum Profit Tax.
That sum, representing just over 10 percent of the total, was utilized by the NNPCL for FGN obligations.
The Nigerian Upstream Petroleum Regulatory Commission remitted over N823 billion, while the Federal Inland Revenue Service (FIRS) made a gross collection of over N3.6 trillion, but remitted N3 trillion, retaining the difference as cost of collection.
A statement from RMAFC shows that the Nigeria Customs Service remitted over N764 billion.
Shehu said the NNPCL did not remit any amount into the Federation Account during the period, either as profit revenue or other revenues as contained in the Petroleum Industry Act.
He added that N1,490,946,180,918.52 (One trillion, four hundred and ninety billion, nine hundred and forty-six million, one hundred and eighty thousand, nine hundred and eighteen naira, fifty-two kobo) was realized as Value Added Tax (VAT) while N83,024,395,855.89 (Eighty three billion, twenty-four million, three hundred and ninety-five thousand, eight hundred and fifty-five Naira, eighty-nine Kobo) was realized from the Electronic Money Transfer Levy (EMTL) from which N3,320,975,834.23 (Three billion, three hundred and twenty million, nine hundred and seventy-five thousand, eight hundred and thirty-four Naira, twenty-three kobo) was paid to FIRS as cost of collection.
Additionally, the FIRS received N82,031,796,937.01 (Eighty two billion, thirty-one million, seven hundred and ninety-six thousand, nine hundred and thirty-seven naira, one kobo) and N3,320,975,834.23 (Three billion, three hundred and twenty million, nine hundred and seventy-five thousand, eight hundred and thirty-four Naira, twenty-three Kobo) as cost of collection on PPT/CIT and EMTL collections respectively in the period.
The report revealed that on VAT, the FIRS/NCS together received N59, 593,164,213.83 (Fifty-nine billion, five hundred and ninety-three million, one hundred and sixty-four thousand, two hundred and thirteen naira, eighty-three kobo) as cost of collection within the period under review.
Similarly, the report indicates that the sum of N16, 680,990,990.93 (Sixteen billion, six hundred and eighty million, nine hundred and ninety thousand, nine hundred and ninety Naira, Ninety three Kobo) was realized from the solid minerals sector.
The RMAFC chair further revealed that total collections from VAT netted N1,387,328,862,898.16 (One trillion, three hundred and eighty-seven billion, three hundred and twenty-eight million, eight hundred and sixty-two thousand, eight hundred and ninety-eight Naira, sixteen Kobo which was shared to the 3-tiers of government by the approved VAT-sharing formula.
On the statutory allocations to the three tiers of government, Shehu disclosed that the net sum of N3,069,594,889,669.74 (Three trillion, sixty-nine billion, five hundred and ninety-four million, eight hundred and eighty-nine thousand, six hundred and sixty-nine Naira, seventy-four Kobo was shared to the 3-tiers of government in the period January to June 2023.
In the area of payment of the cost of collection to Revenue Generating Agencies (RGAs) from the Federation Account component, the statement reveals that the NCS received the sum of N53,524,140,707.73 (Fifty three billion, five hundred and twenty-four million, one hundred and forty thousand, seven hundred and seven Naira, seventy-three Kobo) while the NUPRC received the sum of N33,961,852,403.53 (Thirty-three billion, nine hundred and sixty-one million, eight hundred and fifty-two thousand, four hundred and three Naira, fifty-three Kobo) within the period under review.
In the same vein, the statement adds that the sum of N48,105,698,218.35 (Forty-eight billion, one hundred and five million, six hundred and ninety-eight thousand, two hundred and eighteen Naira, thirty-five Kobo) was paid to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). “This money was collected by NUPRC as a penalty for gas flaring. Revenues on gas flared penalty used to be Federation Account revenues before the PIA, 2021 which provided that such revenues should be paid 100% to the NMDPRA”.
In a similar development, the RMAFC Chair described the statutory deductions which constituted 32.27 percent of the total gross inflow into the Federation Account in the six-month period as superfluous and constituted a drain on the Federation Account.