According to the latest Federation Account Allocation Committee (FAAC) Disbursement Report, released by the National Bureau Statistics (NBS), the sum of N676.41bn was disbursed to the three tiers of government in August 2020 from the revenue generated in July 2020. Compared to the amount disbursed in the previous month (July 2020) this brings about a 2.83% decrease.
The amount disbursed comprised of the following:
- N543.79bn from the Statutory Account and
- N132.62bn from Valued Added Tax (VAT).
A further breakdown of the FAAC August 2020 Disbursement Report by NBS states that the funds were distributed thus:
- Federal Government received N273.19bn
- State Governments received N190.85bn
- Local Governments received N142.76bn and
- oil producing states shared the sum of N42.85bn as 13% derivation fund.
Revenue generating agencies such as Nigeria Custom Services (NCS), Federal Inland Revenue Services (FIRS) and the Department of Petroleum Resources (DPR) receiving the remaining part of the funds as cost of revenue collections.
NCS – N5.65bn
FIRS – N10.21bn
DPR – N4.22bn
Further breakdown of the revenue allocation distribution reveals that the rest of the funds were shared thus:
N210.94bn– FGN consolidated revenue account
N4.83bn – Derivation and ecology
N2.42bn– Stabilization fund
N8.12bn – Natural resources
N6.03bn– Federal Capital Territory (FCT) Abuja
With the exception of a few economic viable states, about 33 of the 36 States thrive on the monthly allocation from the Federal Government.
State Governments (through their Internal Revenue Services) need to deploy effective and efficient means of shoving up their tax revenues through use of technology. This can be done through the deployment of innovative technology solutions such as those developed by Taxaide Technologies Limited (Taxtech). These revolutionary technology solutions will not only enable several State Internal Revenue Services’ generate more revenue for their States Governments but will also ease the payment of taxes for their taxpayers.
To learn more about our technology solutions which some State Governments have already tapped into and reaping the positive results visit: www.taxtech.com.ng
For more information on all tax-related issues, please do not hesitate to contact us at:
Tel: +234 700 TAXAIDE (070 829 2433), +234 1 631 0971
WhatsApp: +234 810 701 7274