SAT. 25 MARCH 2023-theGBJournal | The amount disbursed by the Federation Accounts Allocation Committee (FAAC) to the three tiers of government in March (from the total revenue generated in February) declined by 3.7% m/m to N722.68 billion (February: NGN750.17 billion).
A breakdown of the distributable amount comprises distributable statutory revenue (N366.80 billion), revenue from Valued-Added Tax (N244.23 billion), inflow from Electronic Money Transfer Levy (N11.65 billion), and an N120.00 billion augmentation from Forex Equalisation Account.
Analysts at Cordros Research say they reckon that the decline was due to significant shortfalls in inflows from the Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil & Gas Royalties, and Excise duties, amid a marginal drop in the Value Added Tax (VAT) and Electronic Money Transfer Levies (EMTL) revenues.
Cordros maintains their expectation that the 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 the oil revenue to remain underwhelming because of the relatively low crude oil production volume and high under-recovery costs.
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