N7.3 Trillion Transferred To Federation Account From July To December 2023 — RMAFC

ACCORDING to information released by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), the Federation Account accumulated N7.3 trillion from July to December 2023.

The Central Bank of Nigeria (CBN) received the amount divided by the Federation Account Allocation Committee (FAAC) under the caption “CBN Federation Account Component Statement,” which suggests an increase in revenue inflow, according to the RMAFC.

The commission stated that the amount is greater than the N5.24 trillion realized during the first half of 2023 in a statement signed by Mohammed Bello Shehu, the chairman of the RMAFC.

Shehu stated that a total of N1.69 trillion was transferred from the Federation Account to the Exchange Gain Differential Account, leaving a balance of N5.475 billion for distribution.

He continued by saying that N3.2 trillion was left as a net balance for distribution among the three levels of government during the period under consideration after N3.26 trillion was subtracted from the amount mentioned above as authorized statutory deductions by the OAGF.

  

In his explanation, he said that the N3.267 trillion statutory deduction mentioned earlier was reduced by N2.251 trillion, which was moved to the Non-Oil Excess Account as savings. This left a net statutory deduction of N1.016 trillion, plus additional amounts that were received from various “reserve accounts»for distribution among the three levels of government.

The statement further stated that the three levels of government divided a net amount of N4 trillion during the time under consideration.

The chairman emphasized that the second half of the year's statutory deduction, which included the transfer to the Non-Oil Excess Account, accounted for 44.12 percent of the total gross inflow into the Federation Account during the six-month period. This was a higher percentage than the first half's deductions, which totaled 42.31 percent.

Regarding remittances by Revenue Generating Agencies, the head of RMAFC revealed that the Nigerian National Petroleum Company Limited, or NNPCL, remitted N874.64 billion in the second half of the year, compared to zero in the first half, of the total gross revenue inflows into the Federation Account.

Furthermore, N1.56 trillion was remitted by the Nigerian Upstream Petroleum Regulatory Commission, or NUPRC, and N3.65 trillion was remitted by the Federal Inland Revenue Service.

The present administration's abolition of the gasoline subsidy and unification of the foreign exchange market resulted in an increase in government earnings.

The severe economic realities are being felt by the population, despite the fact that these policies increased government revenue.