FAAC shares record N2.22tr to Federal, states, councils
The Federation Account Allocation Committee (FAAC) has distributed N2.225 trillion as federation revenue to Federal Government, States and councils.
The highest-ever allocation marks the second consecutive month that FAAC disbursements have crossed the N2 trillion mark.
The N2.01 trillion revenue for July, shared during the August FAAC meeting in Abuja, was buoyed by increases in Oil and Gas Royalty, Value Added Tax (VAT) and Common External Tariff (CET) levies, according to a communiqué issued at the end of the meeting.
Of the N2.225 trillion distributable revenue for August, the committee said that N1, 478.593 trillion came from statutory revenue, N672.903 billion from VAT, N32.338 billion from the Electronic Money Transfer Levy (EMTL), and N41.284 billion from Exchange Difference.
The communiqué showed that gross federation revenue for the month stood at N3.635 trillion. From this amount, N124.839 billion was deducted as cost of collection, while N1,285.845 trillion was set aside for transfers, interventions, refunds and savings.
From the statutory revenue of N1.478 trillion, the Federal Government received N684.462 billion, State Governments received N347.168 billion, and Local Government Councils received N267.652 billion. A further N179.311 billion (13 per cent of mineral revenue) went to oil-producing states as derivation revenue.
From the distributable VAT revenue of N672.903 billion, the Federal Government received N100.935 billion, the States received N336.452 billion, while the Local Governments got N235.516 billion.
Of the N32.338 billion shared from EMTL, the Federal Government got N4.851 billion, the 36 states received N16.169 billion and N11.318 billion went to the local government areas.
From the N41.284 billion Exchange Difference, the Federal Government received N19.799 billion, the States received N10.042 billion, the councils received N7.742 billion, while N3.701 billion (13 percent of mineral revenue) was shared to the oil-producing states as derivation.
While total allocation in August set a new record, FAAC explained that gross statutory revenue fell to N2.838 trillion, compared to N3.070 trillion in July — a drop of N231.913 billion.
Right from January, the allocations are as follows: January N1.703 tr; February N1.678 tr; March N1.578 tr; April N1.681 tr; May N1.659 tr; June N1.818 tr; and July N2.001 tr.
The communiqué explained that Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duty, Excise Duty, and EMTL recorded decreases during the month, while VAT, Oil and Gas Royalty, and CET levies boosted overall revenue.
