SAT. 28 JANUARY, 2023-theGBJournal| The amount disbursed by the Federation Accounts Allocation Committee (FAAC) to the three tiers of government in January (from the total revenue generated in December) increased by 9.8% m/m to N990.19 billion (December: N902.10 billion).
The distributed amount was composed of distributable statutory revenue (NGN707.76 billion), revenue from Valued-Added Tax (NGN233.28 billion), inflow from Electronic Money Transfer Levy (NGN24.32 billion), and Exchange gains (NGN24.84 billion).
In addition, we note that a significant increase in Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and Value Added Tax (VAT), and marginal growth in Oil & Gas Royalties and revenue from Excise duties were responsible for the higher disbursed amount to the three tiers of government.
Cordros Research tells theG&BJournal that they maintain 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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