FAAC Allocation Rises 18.8% to N676.4bn in July

By Adedapo Adesanya

The Federation Account Allocation Committee (FAAC) has disclosed that the total sum of N676.4 billion was disbursed to the three tiers of government as federation allocation for the month of July 2020.

This amount is 18.8 per cent or N107 billion more than the allocation of the previous month, N569.4 billion, a communique released after the virtual FAAC meeting for the month chaired by the Permanent Secretary, Federal Ministry of Finance, Budget and National Planning, Mr Mahmoud Isa-Dutse, revealed.

In a breakdown of the allocation to the tiers, with the inclusion of Value Added Tax (VAT), the federal government received N273.2 billion, the 36 states received N190.8 billion while the 774 Local Government councils got N142.8 billion.

The nine oil-producing states of Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, Abia and Lagos received a total of N42.9 billion as derivation. This is 13 per cent of mineral revenue, while the sum of N26.8 billion was paid to the revenue-generating agencies as cost of collection/transfer and refund.

The communique indicated that the gross revenue available from VAT for July 2020 was N132.6 billion as against N128.6 billion distributed in the preceding month of June 2020, resulting in an increase of N3.793 billion.

The distribution is as follows; federal government got N18.5 billion, the states received N61.7 billion, local government councils got N43.2 billion, with the cost of collection/transfer and refund getting N9.3 billion.

The distributed statutory revenue of N543.8 billion received for the month was higher than the N524.5 billion received for the previous month by N19.3 billion, which the federal government received N254.7 billion, states got N129.2 billion, while the local councils got N99.6billion, derivation (13 per cent of mineral revenue) got N42.9 billion and cost of collection/transfer and refund got N17.5 billion.

The communique also revealed that oil and gas royalty, Petroleum Profit Tax (PPT) and VAT increased considerably, while Companies Income Tax (CIT), import and excise duty recorded decreased.

The total revenue distributable for the current month including VAT, according to the committee was N676.407 billion.