Nigeria Economy | |
Nigeria Economy | |
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Thursday, February 22, 2018 / 05:03
PM / Proshare Research
Fig 1: FAAC from Dec 2016 to Jan 2018
Source: NBS
Digging beneath the headline figures, statutory
revenue generated in the month of January 2018 contributed N538 billion to the
FAAC pool. Statutory revenue climbed to its highest level in five months
as it grew by 1.63%. However the high base put the curve in a relatively flat
position, regardless of the increase in absolute terms experienced.
In its random nature, excess charges on account
contributed N1.93 billion to the FAAC pool, higher than its last contribution in
November 2017, which was N0.994 billion. There were neither refunds from
the Nigerian national petroleum company (NNPC) nor contribution from the excess
petroleum product tax’s in the month of January. Unlike the previous and
penultimate months, the foreign exchange equalization fund shored up the FAAC
pool with N30.7 billion
Fig
2: FAAC Pool for January 2018
Source: NBS
The second largest component of the FAAC pool,
Value Added Tax (VAT) contributed N83.9 billion to the pool. VAT grew by 4.3%
on a monthly basis in January. Implying a recovery from the sudden fall it
experienced in the previous month. However the VAT to FACC ratio stood at o.128
for the month of January, obviously below the previous and 12 month average
ratio of 0.136 and 0.152
Fig 3: Value added Tax (VAT) from Dec 2016
to Jan 2018
Source: NBS
Therefore, the shoring up by the equalization fund
and the increase in statutory revenue eroded the ratio. However the present
monetary dynamic has limited the room for foreign exchange gains compared to a
year ago.
Related News
1. NEITI: Nigeria’s Oil Revenues Plunged by 55% to $24.8b in 2015
2. Another Uptick in the FAAC Pay-out; Records 7% Increase in January
Disbursement
3. FAAC Disburses N609.96bn in December 2017 – NBS
4. FAAC: Re-adjusting to The New Norm
5. FAAC Disburses N532.76bn in November 2017 - NBS
6. A Tentative Recovery in Distributions; FAAC Pay-out Amounted to
N610bn in December 2017
7. System Liquidity closes above N400bn as inflows from FAAC and FX
Refunds Hit the System
8. No Clear Trend in FAAC’s Monthly Pay-outs