Federation Account Received N7.3tn In Six Months – RMAFC
The Revenue Mobilization Allocation and Fiscal Commission has revealed that a total sum of N7.3tn accrued into the Federation Account between July and December 2023, showing an increased revenue inflow.
It noted that the amount shared by the Federation Account Allocation Committee was remitted to the Central Bank of Nigeria under the caption “CBN Federation Account Component Statement”.
According to a press statement signed by the RMAFC Chairman, Mr Mohammed Bello Shehu, and made available to a correspondent on Thursday in Abuja, the commission stated that the amount is higher than the N5.24tn realised during the first half of the year 2023.
Shehu explained that out of the total gross revenue inflows into the Federation Account, the sum of N1.69tn was transferred to the Exchange Gain Differential Account, thus leaving a balance of N5.475bn for distribution.
Also, he pointed out that from the amount stated above, the sum of N3.26tn was deducted as approved statutory deductions by the OAGF, leaving a net balance of N2.2tn for distribution within the three tiers of government in the period under review.
In his explaination, the chairman said that out of the N3.267tn statutory deduction indicated above, the sum of N2.251tn was transferred to the Non-Oil Excess Account as savings, thus leaving a net statutory deduction of N1.016tn with further augmentations for sharing among the three tiers of government received from some “reserve accounts.”
In terms of percentages, the chairman stated that “the statutory deduction in the second half of the year constituted 44.12 per cent of the total gross inflow into the Federation Account in the six-month period, which was higher than the first half deductions of 42.31 per cent (inclusive of transfer to the Non-Oil Excess Account).”
On remittances by Revenue Generating Agencies, he said out of the total gross revenue inflows into the Federation Account, the Nigerian National Petroleum Company Limited remitted N874 64bn in the second half of the year as against the zero-remittance made in the first half of the year.
In a related development, the RMAFC chairman urged that the cost of collection received by revenue-generating agencies should henceforth be tied to their performance as a way of boosting revenue generation and remittances.
This proposal, outlined by the RMAFC chairman is meant to incentivise RGAs to be more proactive in generating revenue for the Federation Account.
He said, “We strongly advocate that payment of the cost of collection to RGAs should be tied to revenue performance. In other words, each RGA should receive a cost of collection commensurate with the revenue generated against its revenue target, as provided for in the Appropriation Act."