FAAC Allocation in September Drops on Shortfall in Companies Income Tax, Others

By Aduragbemi Omiyale

**As FG, States, Local Councils Share N673.1bn

The money shared by the federal, state and local governments in September 2022 as federal allocation went down to N673.1 billion from the N954.1 billion received in August 2022.

The primary reason for the decline in the revenue generated in the month was a shortfall in Companies’ Income Tax (CIT), Petroleum Profit Tax (PPT), and oil/gas royalties.

These components of the earnings outweighed the significant increases in the revenue generated from Value Added Tax (VAT), import and excise duties in the month under review.

Some hours ago, the Federation Account Allocation Committee (FAAC) held a meeting with Commissioners of Finance of the 36 state governments and others to share the revenue generated by the country last month.

The allocated funds are used mainly by various federal, state and local governments to pay the salaries of workers under their payrolls.

A communiqué issued at the close of the gathering on Friday disclosed that the disbursed amount comprised gross statutory revenue of N437.871 billion, Value Added Tax (VAT) of N215.266 billion, and augmentation of non-oil excess revenue of N20.000 billion.

Business Post learned that from the gross revenue of N437.871 billion, the federal government got N259.641 billion, the states received N222.949 billion, the local government councils got N164.247 billion, while the oil producing states received N0.000 billion as derivation as 13 per cent of mineral revenue.

Also, from the N215.266 billion shared as VAT revenue, the central government got N32.290 billion, the states received N107.633 billion, and local councils got N75.343 billion.

From the N20.000 billion augmentation of non-oil excess revenue now converted to distributable revenue, the national government received N10.536 billion, the states got N5.344 billion, and the local councils received N4.120 billion.

In the communiqué, it was stated that the balance in the Excess Crude Account (ECA) as of September 23, 2022, stood at $470,599.54.