N7.314trn accrues to Federation Account in HY2 2023, says RMAFC

• NNPC Ltd remits N874.6bn; NUPRC: N1.568trn; FIRS: N3.65trn ; NCS: N1.216trn

Ben Eguzozie

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) says the Federation Account received a little above N7.314 trillion (N7,314,129,314,386.08) in half-year 2023 (HY 2023 – July to December), as captured in the Federation Account Allocation Committee (FAAC) monthly report by the Central Bank of Nigeria (CBN).

The amount captioned CBN Federation Account Component Statement, is higher than N5.244 trillion (N5,244,037,636,561.60) realised in the first half of the year 2023 (HY 2023).

According to Mohammed Bello Shehu, RMAFC chairman, in a statement in Abuja, seen by Business A.M., out of the total gross revenue inflows into the Federation Account, more than N1.692 trillion (N1,692,591,243,111.06) was transferred to the Exchange Gain Differential Account, leaving a balance of N5.475 trillion (N5,475,345,228,675.47) for distribution.

The sum of N3.267 trillion (or exactly N3,267,312,106,993.25) was deducted as approved statutory deductions by the office of the accountant general of the federation (OAGF), leaving a net balance of N2.208 trillion or (N2,208,033,121,682.22) for distribution to the three tiers of government within the period under review.

The RMAFC chairman further explained that out of the N3.267 trillion statutory deduction indicated above, N2.251 trillion was transferred to the Non-Oil Excess Account as savings, leaving a net statutory deduction of N1.016 trillion with further augmentations for sharing among the three tiers of government received from some “reserve accounts,” that is, revenues maintained by the Federal Ministry of Finance and OAGF.

Mohammed Bello Shehu added that within the period under review, the net sum of N4 trillion (or exactly N4,000,616,207,152.95) was shared with the three tiers of government, an amount higher than the total of N3.069 trillion (N3,069,594,889,669.74) shared to the three tiers of government in the first half year, January to June 2023.

In terms of percentages, the RMAFC chairman said “the statutory deduction in the second half of the year constituted 44.12% of the total gross inflow into the Federation Account in the six-month period, which was higher than the first half deductions of 42.31% (inclusive of transfer to the Non-Oil Excess Account).”

On remittances by Revenue Generating Agencies (RGAs), Mohammed Bello Shehu said the Nigerian National Petroleum Company Limited (NNPC Ltd) remitted N874.645 billion (N874,645,145,704.30) into the Federation Account in the HY2 2023 against zero-remittance it made in the first half of the year.

Similarly, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted N1.568 trillion (N1,568,961,616,920.99), while the Federal Inland Revenue Service (FIRS) remitted N3.653 trillion (N3,653,693,895,023.45) during the period under review. Also, the Nigeria Customs Service (NCS) remitted N1.216 trillion (N1,216,828,656,737.34).