NNPCL remits N264b into Federation Account
Fed, States, councils share N1.7tr January allocation
The Nigerian National Petroleum Company Limited (NNPCL) has remitted N264 billion to the Federation Account Allocation Committee (FAAC) to reduce its outstanding debt to the federation.
Chairman of the Finance Commissioners Forum, Akin Oyebode, confirmed this in an interview yesterday.
Speaking against the background of the FAAC meeting held in Abuja on Monday, Oyebode explained that NNPCL was supposed to remit N528 billion but opted to pay half of the amount while reconciliation efforts continue.
He noted that discussions were still ongoing to determine the actual debt owed by both the federation and the NNPCL, particularly regarding fuel subsidy payments.
In a statement, the Office of the Accountant General of the Federation (OAGF) indicated that a total of N1.703 trillion was shared as January 2025 Federation Account Revenue.
The revenue distribution included N749.727 billion from statutory revenue, N718.781 billion from Value Added Tax (VAT), N20.548 billion from the Electronic Money Transfer Levy (EMTL), and N214 billion as an augmentation.
The FAAC communiqué disclosed that the total gross revenue available in January 2025 was N2.641 trillion, an increase from previous months. However, after deductions for collection costs and other expenses totaling N938.449 billion, N1.703 trillion remained for distribution.
From the total revenue, the federal government received N552.591 billion, state governments received N590.614 billion, and local government councils got N434.567 billion. Additionally, N125.284 billion was allocated to oil-producing states as 13 percent derivation revenue.
The breakdown of statutory revenue distribution showed that the federal government received N343.612 billion, states got N174.285 billion, and local governments received N134.366 billion. Oil-producing states were given N97.464 billion as their share of mineral revenue.
Regarding VAT revenue, N718.781 billion was distributed, with the federal government receiving N107.817 billion, states N359.391 billion, and local governments N251.573 billion.
The FAAC report also highlighted an increase in VAT, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty, and Common External Tariff (CET) levies. However, there was a decline in revenue from the Electronic Money Transfer Levy (EMTL) and Oil and Gas Royalty.
Meanwhile, following the release of FAAC allocations to the three tiers of government, there were indications yesterday that civil servants would receive their February 2025 salaries “shortly.”
A report indicated that “personnel warrants for February 2025 salaries have been released to ministries, departments, and agencies (MDAs) under the Integrated Personnel and Payroll Information System (IPPIS) and Government Integrated Financial Management Information System (GIFMIS).”
A source at the OAGF stated that those on the IPPIS platform should expect “salary alerts shortly,” while GIFMIS payments will depend on each institution’s readiness to process them.
The source, however, assured that all civil servants “would start receiving their salaries shortly.”
Credit: The Nation
