FAAC Disburses N760.7bn to FG, States, LGs in August

By Aduragbemi Omiyale

The federal, states and local governments in Nigeria have shared the sum of N760.7 billion generated as revenue in July 2021.

A communiqué issued by the federal government at the end of the virtual meeting of the Federation Accounts Allocation Committee (FAAC) on Friday, August 20, 2021, confirmed this.

According to the notice, the federal government got N321.2 billion, while the 36 states received N222.5 billion, with the local councils collecting N166.6 billion.

In addition, the oil-producing states of the federation, mostly in the south-south region of the country, were given N50.4 billion as 13 per cent derivation revenue.

It was stated that last month, the N760.7 billion distributable revenue was raked from distributable statutory revenue of N617.7 billion, distributable Value Added Tax (VAT) revenue of N140.6 billion and Exchange Gain of N2.5 billion, with the cost of collection, statutory transfers and refunds accounting for N63.501 billion during the month in view.

In the communique, it was said that last month, the gross revenue available from VAT was N151.1 billion, N3.3 billion lower than the N154.5 billion generated in June.

Business Post gathered that from the N151.1 billion VAT revenue for the month, the sum of N6.1 billion was taken out as the cost of revenue collection, while N4.5 billion was given to the North East Development Commission (NEDC).

This meant that the three tiers of government only had N140.6 billion to share this month from the VAT revenue of N151.1 billion raked in July.

A breakdown of the distribution showed that the federal government got N21.1 billion, state governments collected N70.3 billion, while the 774 local government areas received N49.2 billion.

Also, from the total Exchange Gain revenue of N2.5 billion realized last month, the federal government took N1.1 billion, state governments shared N578 million, local councils got N445 million, while the oil-producing states received N295 million as a 13 per cent derivation.

It was disclosed that as at August 20, 2021, the amount left in the nation’s Excess Crude Account (ECA) remained flat at $60.9 million compared with the same period of last month.