FAAC allocation to federal govt, subnationals rises to N907.054bn in June

By Onome Amuge.

The Federation Account Allocation Committee (FAAC) has shared a total sum of N907.054 billion federation account revenue to the federal government,36 states, and 774 local government councils for June 2023, representing a 120.893 billion increase compared to NN786.161 billion for May 2023.

The increase since January when N1.14 trillion was disbursed to the three tiers of government

FAAC made the disclosure in a communiqué issued at the end of its latest meeting in Abuja, chaired by Oluwatoyin Madein, the  accountant general of the federation.

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

The communiqué said the total distributable revenue comprised distributable statutory revenue of N301.501 billion, distributable Value Added Tax (VAT) revenue of N273.225 billion, Electronic Money Transfer Levy (EMTL) of N11.436 billion, and Exchange Difference revenue of N320.892 billion.

In June 2023, the total deductions for cost of collection  rose to N73.235 billion against N38.238 billion in May 2023,and  total deductions for transfers and refunds stood at N979.078 billion. Meanwhile, the balance in the Excess Crude Account (ECA)  remained at $473,754.57, same as at May 2023.

A breakdown of the allocations showed that from the  N907.054 billion distributable statutory revenue, the federal government received N345.564 billion , the state governments received  N295.948 billion, the local governments got N218.064 billion.Meanwhile, N47.478 billion was

shared to the relevant states as 13 per cent derivation revenue, N24.623 billion above  N22.855 billion shared in May 2023.

Gross statutory revenue of N1,152,921 billion was received for the month of June 2023. This was higher than the sum of N701.787  billion received in the previous month by N451.134 billion.

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 disclosed that for the month of  June 2023, the gross revenue available from the Value Added Tax (VAT) stood at N293.411 billion, N23.214 billion higher than the N270.197 billion recorded in f May 2023.

The  Federation Account Allocation Committee noted that of the N273.225  billion distributable Value Added Tax (VAT) revenue, the federal government received N40.984 billion, the state governments got N136.613  billion and the local government councils received N95.629 billion.

According to the communiqué, out of the  N11.436 billion Electronic Money Transfer Levy (EMTL), the federal government received N1.715 billion, the state governments received N5.718 billion and the local governments got N4.003 billion.

From the N320.892 billion exchange difference revenue, the federal government got N156.155 billion, the state governments received N79.204 billion, the local governments received N61.063 billion and the sum of N24.470 billion was shared to the relevant states as 13 percent mineral revenue.