FAAC Disburses N907.1bn to FG, States, LGs for July

By Aduragbemi Omiyale

The sum of N907.054 billion, approximately N907.1 billion, has been distributed to the three tiers of government by the Federation Account Allocation Committee (FAAC) in July 2023.

The money was from the revenue generated by the country in June 2023, which is shared monthly among the federal, state and local governments to support their respective internally generated revenues (IGRs).

Business Post reports that last month, earnings from Companies Income Tax (CIT) significantly rose, as well as Import and Excise Duties, Value Added Tax (VAT), and Oil and Gas Royalties. However, revenue from Petroleum Profit Tax (PPT) and Electronic Money Transfer Levy (EMTL) decreased considerably.

It was gathered that Nigeria earned a gross statutory revenue of N1.153 trillion in June 2023, higher than the N701.787 billion achieved in May 2023 by N451.134 billion.

A statement issued at the end of the FAAC meeting for July 2023 on Thursday by the group’s spokesman, Mr Bawa Mokwa, of the amount, N907.054 billion was the total distributable revenue, comprising distributable statutory revenue of N301.501 billion, distributable Value Added Tax (VAT) of N273.225 billion, Electronic Money Transfer Levy (EMTL) of N11.436 billion, and Exchange Difference revenue of N320.892 billion.

He further said at the meeting chaired by the Accountant General of the Federation, Dr Oluwatoyin Madein, it was agreed that the central government should get N345.564 billion, state governments should receive N295.948 billion, the local councils should take N218 billion, and the relevant states to go with N47.478 billion as 13 per cent derivation revenue.

It was disclosed that from the N301.501 billion distributable statutory revenue, the national government received N146.710 billion, the state governments got N74.413 billion, the councils received N57.370 billion, and the relevant states got N23.008 billion as 13 per cent derivation revenue.

In addition, from the N273.225 billion distributable VAT earnings, the federal government took N40.984 billion, the states got N136.613 billion, and the local governments received N95.629 billion.

Further, from the N11.436 billion EMTL, FAAC shared N.1715 billion to the federal government, N5.718 billion to the states, and N4.003 billion to the councils.

Also, from the N320.892 billion Exchange Difference revenue, the central government got N156.155 billion, the states took N79.204 billion, the local government councils went with N61.063 billion, and the relevant states shared N24.470 billion as 13 per cent mineral revenue.

Mr Mokwa stated in the communique that the total deductions for the cost of the collection were N73.235 billion, and total deductions for transfers and refunds were N979.078 billion, while the balance in the Excess Crude Account (ECA) was $473,754.57.