FAAC Allocation to FG, States, LG Rises Marginally in August

By Adedapo Adesanya

The Federation Accounts Allocation Committee (FAAC) shared the sum of N682.1 billion to the three tiers of government for the month of August, a figure that is marginally higher than what was disbursed in July.

Specifically, the amount is just 0.84 per cent or N5.7 billion more than the allocation of the previous month’s N676.4 billion, a communique released after the virtual FAAC meeting showed.

According to the communique, gross statutory revenue of N531.8 billion was received for August, which is lower than the N543.8 billion received in the previous month by N12 billion.

The gross revenue available from the Value Added Tax (VAT) was N150.2 billion as against N132.6 billion available in the previous month, resulting in an increase of N17.6 billion.

The communiqué issued also indicated that from the total distributable revenue of N682.1 billion; the federal government received N272.905 billion, the state governments received N197.648 billion and the local government councils received N147.422 billion.

The nine oil-producing states of Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, Abia and Lagos received N30.9 billion as 13 per cent derivation revenue, while the cost of revenue collection and transfers collectively had an allocation of N33.2 billion.

The federal government received N251.9 billion from the gross statutory revenue of N531.8 billion; the state governments received N 127.8 billion and the local government councils received N98.5 billion. N30.9 billion was given to the relevant states as a 13 per cent derivation revenue and N22.7 billion was the collective total for the cost of revenue collection, transfers, and refund to agencies.

The federal government received N20.9 billion from the Value Added Tax (VAT) revenue of N150.2 billion. The state governments received N69.9 billion; the local government councils received N48.9 billion, while the cost of revenue collection and transfers collectively had an allocation of N10.5 billion.

The communiqué stated that for the month of August, oil and gas royalty, Companies Income Tax (CIT), import and excise duty and VAT increased considerably, while Petroleum Profit Tax (PPT) decreased significantly.