The three tiers of government shared N569.4billion from a gross revenue of N763.6billion generated for the month of June.
The Accountant General of the Federation, Jonah Otunla, said at the end of the month’s Federation Accounts Allocation Committee (FAAC) meeting in Abuja on Tuesday that the revenue yield for the month was higher than the N579.3billion collected the previous month by about N184.3billion.
Total revenue received during the month includes earnings from mineral revenue of about N529.9billion and non-mineral revenue of N233.6billion.
The AGF attributed the increased revenue for the month to a rise in Company Income Tax (CIT), import duties and Petroleum Profit Tax (PPT) on Production Sharing Contract (PSC) and modified carry arrangement (MCA).
Details of the revenue distribution for the month showed that total distributable statutory revenue for the month was N467billion, after about N88.7billion was transferred to the non-oil Excess Revenue Account, in addition to N7.617billion refunded by the Nigerian National Petroleum Corporation (NNPC) to defray the N450billion indebtedness to the Federation Account.
About N207.89billion was transferred to the Excess Crude Account (ECA).
“The Excess crude account is supposed to serve as a buffer for the economy,” Mr. Ngama said. “Whenever available revenue is not up to the budgeted figure, government will augment for the health of the economy. The policy government is pursuing is to raise the balance in the account to a certain level of not less than $10billion. This is to ensure that at any time the government has enough revenue to take care of the allocations for at least two months.
“As at today, we are moving towards that target. Today, we have about $6.9billion as the balance in the ECA, while the balance in the Naira denominated excess crude account is about N115billion.”
In addition, valued added tax (VAT) revenue earnings for the month was N59.22billion, while about N35.6billion was refunded to the three tiers of government the Subsidy Reinvestment and Empowerment Programme (SURE-P) programme.
The Minister of State for Finance, Yerima Ngama, said the distribution of the revenue showed that Federal Government took N218.3billion, or 52.68 per cent; states N110.7billion, or 26.72 per cent; local governments N85.36billion, or 20.6 per cent, and 13 per cent derivation for mineral producing states, N41.86billion.