FG, states, local governments share N802.407bn as FAAC allocation rises by 18%

By Onome Amuge.

The Federation Account Allocation Committee (FAAC) has disbursed a total sum of N802.407 billion as federation allocation for the month of June 2022 accorded to the federal and state governments, as well as the country’s 774 local government councils. The figure represents an increase of N121,624 billion or 18 percent rise in revenue compared to N680,783 billion shared in the previous month of May.

This is contained in a communiqué issued at the conclusion of the recent FAAC meeting for July 2022 held in Abuja.

The communiqué confirmed that gross statutory revenue of N1,012.065 billion was received for the month of June 2022. This was N422.113 billion higher than N589.952 billion received in the previous month.

From the N608.580 billion distributable statutory revenue of N608.580 billion, the federal government was allocated the sum of N292.785 billion, states received N148.505 billion, local governments got N114.491 billion, while states entitled to oil derivation received N52.799 billion.

Meanwhile, the gross revenue available from the Value Added Tax (VAT) stood at N208.148 billion. This was N5.031 billion lower than the N213.179 billion available in the month of May 2022.

From the N193.827 billion distributable VAT revenue, the federal government received N29.074 billion, the state governments got N96.914 billion, while the local government councils received N67.839 billion.

From the total distributable revenue, inclusive of gross statutory revenue and Value Added Tax (VAT), the federal government was allotted N321.859 billion, the 36 state governments received N245.418 billion and local government councils got N182.330 billion. In addition, the sum of N52.799 billion was allocated to the relevant oil producing states as 13 percent derivation revenue.

According to the communiqué, companies income tax and petroleum profit tax recorded significant increases in June 2022, while import duty and oil and gas royalties also increased marginally.

On the flipside, excise duties decreased significantly while Value Added Tax declined marginally.

The balance in the Excess Crude Account (ECA) also decreased to $376,655.09 million in June, from $35.377 million recorded in May.