Nigeria Economy | |
Nigeria Economy | |
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Monday, April 27,
2020 / 08:52 AM / by FBNQuest Research / Header Image
Credit: Ecographics
The
gross monthly payout by the Federation Account Allocation Committee (FAAC) to
the three tiers of government amounted to N781bn (US$2.04bn) in April (from
March revenue). This was an increase of N199bn on the previous month's payment,
which had been delayed due to finance commissioners' initial rejection of the
offer. It should support the payment of April salaries. The OAGF's cursory
statement following the decision last week noted that receipts from petroleum
profit tax, companies' income tax (CIT), import and excise duty, oil and gas
royalties, and VAT were all comfortably higher on the month.
The gross payout consisted of the statutory allocation of N598bn, the
VAT Pool of N120bn and exchange-rate gains of N63bn. The fees and charges of
the three tax collection agencies were then deducted before the distribution.
In addition to the usual division between the three tiers, a transfer
was made to the North-East Development Commission.
We struggle to explain the strong pick-up in revenue in March beyond the
increase in the standard rate of VAT from February. Payments from the VAT Pool
were N20bn higher. It is not a peak month in CIT collection, for example.
Nor were we expecting a boost to mineral (oil) revenue in March.
Nigerian oil is generally sold three months forwards so the recent crashing of
the price should be reflected in June's revenue in the federation account. In
anticipation of a particularly small distribution, President Buhari is said to
have authorized the withdrawal of US$150m from the Nigerian Sovereign
Investment Authority to supplement the payout from June's revenue.
Revenue allocations (gross) by the
FAAC (N bn) |
|
Sources: Office of the accountant-general of the
federation (OAGF); local media; CBN; FBNQuest Capital Research |
Full details of FAAC distributions are available on the OAGF website.
The most recent, however, date from July 2019 (on June revenue).
Related News - NBS
1.
FAAC
Disburses N647.35bn in February 2020 - NBS
2.
FAAC
Disburses N716.30bn in January 2020 - NBS
3.
FAAC Disburses
N2.93trn to FG in 2019 - NBS
4.
FAAC
Disburses N650.83bn in December 2019 - NBS
5.
FAAC Disburses
N702.02bn in November 2019 - NBS
6.
FAAC Disburses
N693.52bn in October 2019 - NBS
7.
FAAC Disburses
N740.87bn in September 2019 - NBS
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