FAAC Shares N714bn March revenue to FG, States, LGAs

From Abubakar Yunusa Abuja

The Federation Accounts Allocation Committee (FAAC) has shared a total of N714.629 billion as March 2023 federation revenue to the federal, state, and local government councils and other relevant agencies in the country.

This was disclosed in a communiqué issued at the end of the FAAC meeting for April 2023.

The amount includes gross statutory revenue, value-added tax, exchange gain, and electronic money transfer levies.

A breakdown of the figure showed that the federal government received N276.141 billion, the states received N232.129 billion, the local government councils got N95.243 billion, while the oil-producing states received N35.102 billion as derivation (13 per cent of Mineral Revenue).

“The N714.629 billion total distributable revenue comprised distributable statutory revenue of N497.448 billion, distributable Value Added Tax (VAT) revenue of N202.693 billion and Electronic Money Transfer Levy(EMTL) of N14.488 billion,” the communique said.

In March 2023, it said the total deductions for the cost of collection was N31.355 billion and total deductions for transfers, refunds, and consultancy fees were N126.567 billion.

The balance in the Excess Crude Account (ECA) was $473,754.57.

The communiqué added that the gross statutory revenue of N638.673 billion was received for March 2023. This was higher than the sum of N487.106 billion received in the previous month by N151.567 billion.

For March 2023, it said the gross revenue available from the Value Added Tax (VAT) was N218.786 billion, a figure lower than the N240.799 billion available in February 2023 by N22.013 billion.

The federal government received N30.404 billion, the state governments received N101.347 billion and the local government councils received N70.943 billion from the N202.693 billion distributable Value Added Tax (VAT) revenue.

Of the N14.488 billion Electronic Money Transfer Levy (EMTL), the federal government received N2.173 billion, the state governments received N7.244 billion and the local government councils received N5.071 billion. According to the communiqué, in March 2023, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Import and Excise Duties, Electronic Money Transfer Levy(EMTL) increased remarkably while Value Added Tax (VAT) decreased considerably.

Nigerian fined £26,835 for smuggling cigarettes into London

AUnited Kingdom tribunal has held that a Nigerian be fined the sum of £26,835 (over N15 million) after being charged in relation to 61,800 cigarettes found in his bag without appropriate disclosure to relevant revenue authorities. The cigarettes were seized at Heathrow Airport, London, in February 2020.

Details of the judgement are contained in an appeal filed by the Nigerian, Oladipupo Fagbewesa, against the civil evasion penalty issued on 21 June 2021.

In court documents seen by PREMIUM TIMES, the tribunal judge, Abigail Mcgregor, held that Mr Fagbewesa owned the cigarettes that were seized from his bags and subsequently upheld the penalty.

According to the court document dated 12 April, the Notice of Appeal was submitted to the tribunal just over a month late and was received on 23 September 2021. An explanation for the lateness was given in the Notice of Appeal, the document said.

The reasons for the lateness include, among others, the fact that the conclusion letter, dated 14 July 2021, was not received by Mr Fagbewesa until 14 August 2021 because he had been away in Nigeria caring for his sick mother for a 3-week period from 25 July 2021. Similarly, the document said Mr Fagbewesa works at night and therefore has limited time in the day to seek legal advice; he found affordable legal advice on 27 August 2021; English is not his first language and he had trouble understanding the procedure.

Based on the reasons given and the absence of objection from the HM Revenue and Customs, a non-ministerial department of the UK Government responsible for the collection of taxes, the court decided to admit the appeal late.

But after hearing arguments from the parties, the tribunal ruled that the seized cigarettes belonged to Mr Fagbewesa and upheld the £26,835 penalty against him.