FAAC allocates N966.110bn to federal govt, subnationals as revenue drops to N1.74trn in July

By Onome Amuge.

The Federation Account Allocation Committee (FAAC) has shared a total sum of N966.110  billion federation account revenue to the federal government,36 states, and 774 local government councils for July 2023, out of a total gross revenue of N1, 746.491 trillion.

Business A.M gathered that though the N1.74 trillion is a 10.8 per cent or N21 million decline from N1.95 trillion recorded in June 2023, the N966.1 billion disbursed represents a slight increase against N907.054 billion disbursed in the previous month.

FAAC,in a communiqué issued at the end of its latest meeting in Abuja, chaired by Wale Edun,the minister of finance and the co-ordinating minister of the economy,said  the total sum disbursed comprised distributable statutory revenue of N397.419 billion, distributable Value Added Tax (VAT) revenue of N271.947 billion, Electronic Money Transfer Levy (EMTL) revenue of N12.840 billion and Exchange Difference revenue of N283.904 billion.

It also indicated a considerable increase in  Import and Excise Duties and Electronic Money Transfer Levy (EMTL),marginal increase in Value Added Tax (VAT), while Companies Income Tax (CIT),  Petroleum Profit Tax (PPT), and Oil and Gas Royalties, recorded significant decreases.

The communiqué said the total distributable revenue comprised distributable statutory revenue of N397.419 billion, distributable Value Added Tax (VAT) revenue of N271.947  billion, Electronic Money Transfer Levy (EMTL) of N12.840 billion, and Exchange Difference revenue of N283.904 billion.

Meanwhile, the balance in the Excess Crude Account (ECA)  remained unchanged at $473,754.57.

A breakdown of the allocations showed that from the  N966.110  billion distributable statutory revenue, the federal government received N374.485 billion , the state governments received  N310.670 billion, the local governments got N229.409 billion.Meanwhile, N51.545 billion was

shared to the relevant states as 13 per cent derivation revenue,a N4 billion increase from  N47.47 billion shared in June 2023.

The communiqué  disclosed that from the N301.501 billion distributable statutory revenue, the federal government received N146.710billion, the state governments received N74.413 billion and the local governments received N57.370 billion. The sum of N23.008 billion was shared to the relevant states as 13 per cent derivation revenue.

It further noted that for the month of  July 2023, the gross revenue available from the Value Added Tax (VAT) stood at N298.789 billion, N5.378 billion higher than the N293.411 billion recorded in June 2023.

The  Federation Account Allocation Committee disclosed further that of the N271.947  billion distributable VAT revenue, the federal government received N40.792 billion, the state governments got N135.974  billion and the local government councils received N95.181 billion.

According to the communiqué, out of the  N12.840 billion Electronic Money Transfer Levy (EMTL), the federal government received N1.926 billion, the state governments received N6.420 billion and the local governments got N4.494 billion.

FAAC also reported a decline in the exchange difference revenue from N320.892 billion in June to N283.904 billion in July. From that amount, the federal government got N141.278 billion, the state governments received N71.658 billion, the local governments received N55.245 billion and the sum of N15.723 billion was shared to the relevant states as 13 percent mineral revenue.