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Federation account accrues N5.2tr from Jan–June 2023

NNPCL did not remit any revenue to the federation account from January to June

The Revenue Mobilisation Allocation And Fiscal Commission (RMAFC) says that a total sum of N5.2 trillion has accrued into the Federation Account for the period January to June 2023.

This is captured in the monthly report to the Federation Account Allocation Committee (FAAC) by the Central Bank of Nigeria (CBN).

In a press statement signed by the RMAFC Chairman, Mohammed Bello Shehu, the Commission says that out of the total gross revenue inflows into the Federation Account, the sum of N627 billion was NNPCL JV Petroleum Profit Tax (PPT) due, captured and recorded by the FIRS, but utilised by the NNPCL for other FGN obligations.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted the sum of N823 billion, while the Federal Inland Revenue Service (FIRS) made a gross collection of N3.6 trillion but remitted N3.02 trillion, retaining the difference as a cost of collection.

The statement further disclosed that the Nigeria Customs Service (NCS), on its part, remitted the sum of N764 billion.

It was, however, added that the Nigerian National Petroleum Company Limited (NNPCL) did not remit any amount into the Account during the period either as profit revenue or other revenues as contained in the Petroleum Industry Act (PIA), 2021, as its revenue performance could not be assessed because neither its revenue target was disclosed nor its revenue remittance to the Federation Account was provided.

Furthermore, the statement adds that the sum of N1.4 trillion was realised as Value Added Tax (VAT), while the sum of N83.2 billion was realised from the Electronic Money Transfer Levy (EMTL).

Similarly, the report indicates that a sum of N16.6 billion was realised from the solid minerals sector.

Writing by Biodun Dare; Editing by Muzha Kucha