In the last six months of 2023, the Federation Account received a total remittance of N7.3 trillion, signifying an upsurge in revenue inflow, according to the Revenue Mobilization Allocation and Fiscal Commission.
Mr. Mohammed Bello Shehu, the Chairman of RMAFC, made this disclosure in a statement released on Thursday. The funds shared by the Federation Account Allocation Committee were transferred to the Central Bank of Nigeria under the label “CBN Federation Account Component Statement.”
Compared to the N5.24 trillion received in the first half of 2023, the amount remitted during the last six months was notably higher, as reported by the commission.
From the total gross revenue inflows into the Federation Account, N1.69 trillion was allocated to the Exchange Gain Differential Account, leaving a balance of N5.475bn for distribution, Shehu explained.
Discussing the remittances by Revenue Generating Agencies, the head of RMAFC mentioned that the Nigerian National Petroleum Company Limited remitted N874.64bn in the latter half of the year, a significant improvement from the zero-remittance in the first half.
Additionally, the Nigerian Upstream Petroleum Regulatory Commission remitted N1.56tn, while the Federal Inland Revenue Service contributed N3.65tn to the Federation Account.
The government’s revenue saw a boost following the elimination of fuel subsidies and the administration’s unification of the foreign exchange market in June the previous year.
Shehu emphasized that the disbursement of the cost of collection to revenue-generating agencies should be linked to revenue performance objectives in order to ensure accountability.
He stated, “It is strongly recommended that the payment of the cost of collection to RGAs be aligned with revenue performance. Each RGA should receive a cost of collection proportional to the revenue generated compared to its revenue target, as stipulated in the Appropriation Act.”