SAT, MAY 20 2023-theGBJournal |The amount disbursed by the Federation Accounts Allocation Committee (FAAC) to the three tiers of government in April (from the total revenue generated in March) declined by 8.2% m/m to N655.93 billion (March: N714.63 billion).
For the review period, we note that declines in inflows from the Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Import and Excise Duties, and Value Added Tax (VAT) led to the fall in revenue.
Furthermore, the distributed amount was composed of distributable statutory revenue (N364.65 billion), distributable Valued-Added Tax revenue (N202.76 billion), inflow from Electronic Money Transfer Levy (N14.52 billion), N50 billion augmentation from Forex Equalisation, and Non-Mineral revenue of N24.00 billion.
We maintain our expectation that non-oil revenue will continue to support aggregate revenue, given the sustained improvement in economic activities and the impact of the provisions of the 2022 Finance Act.
”However, we expect oil revenue to remain underwhelming due to lower crude oil prices, reduced crude oil production relative to pre-pandemic levels, and high PMS under-recovery costs,” Cordros Research analysts project.
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