RMAFC Reports N7tr Revenue into Federation Account
…Calls for Performance-Based Cost Collection
By Patience Ikpeme
The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has announced a total of N7,314,129,314,386.08 accruing into the Federation Account between July and December 2023.
This figure surpassed the N5,244,037,636,561.60 realized in the first half of the year.
RMAFC Chairman, Mr. Mohammed Bello Shehu, highlighted these figures in a press statement, stating, “The figures captured in the CBN Federation Account Component Statement demonstrate significant revenue growth for the country.”
Out of the total inflows, N1,692,591,243,111.06 was allocated to the Exchange Gain Differential Account, leaving a balance of N5,475,345,228,675.47 for distribution.
Mr. Shehu explained that after deducting N3,267,312,106,993.25 as approved statutory deductions, a net balance of N2,208,033,121,682.22 was available for distribution among the three tiers of government.
He further detailed that N2.251 trillion was transferred to the Non-Oil Excess Account as savings, leaving a net statutory deduction of N1.016 trillion for sharing, augmented by reserves from the Federal Ministry of Finance/OAGF.
During the July to December period, a net sum of N4,000,616,207,152.95 was shared among the three tiers of government, reflecting an increase from the N3,069,594,889,669.74 shared in the first half of the year.
Regarding revenue-generating agencies (RGAs), significant remittances were noted, including N874,645,145,704.30 from the Nigerian National Petroleum Company Limited (NNPCL), which saw zero remittance in the first half.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted N1,568,961,616,920.99, while the Federal Inland Revenue Service (FIRS) contributed N3,653,693,895,023.45, and the Nigeria Customs Service (NCS) added N1,216,828,656,737.34 to the Federation Account.
Mr. Shehu also emphasized the need for a Performance-Based cost of collection for RGAs, stating, “Payment of the cost of collection to RGAs should be tied to revenue performance.”
In a detailed breakdown, the FIRS received N118.7 billion for Value Added Tax (VAT) and Petroleum Profit Tax and Company Income Tax (PPT/CIT) collections, while the Nigeria Customs Service (NCS) received N85.2 billion. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) received N62.8 billion, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) received a refund of N108.3 billion related to gas flared penalties.
The RMAFC commended the performance of some RGAs but urged others to improve revenue consistency. The report highlighted positive trends in VAT collection, showing a growth of 30.58% in the second half of 2023 compared to the first half.
Mr. Shehu expressed concern over revenue practices, particularly the NNPCL’s financing of “FGN Priority Projects” from withheld funds. He stressed the importance of channeling all NNPCL Joint Venture Profit Tax (PPT) through the FIRS into the Federation Account.
The RMAFC reaffirmed its commitment to reviewing Federation Account activities and supporting President Bola Ahmed Tinubu’s Renewed Hope Agenda for sustainable economic growth. Through measures like performance-based cost collection and curbing revenue leakages, the commission aims to bolster national revenue and enhance Nigeria’s economic stability.
