FAAC splits N906bn between FG, States, LGs
By Matthew Denis, Abuja
The Federation Account Allocation Committee (FAAC), at its retreat and meeting has shared a total sum of N906.955 billion to the three tiers of government as Federation Allocation for the month of October, 2023.
The Committee meeting is chaired by Mr Wale Edun, the Honourable Minister of Finance and Co-ordinating Minister of the Economy who was represented by Okokon Udo ,the Permanent Secretary Federal Ministry of Finance.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference, and Augmentation of N60.000 billion, the Federal Government received N323.355 billion, the States received N307.717 billion, the Local Government Councils got N225.209 billion, while the Oil Producing States received N50.674 billion as Derivation, (13% of Mineral Revenue).
The communique also disclosed that the sum of N50.674 billion was given for cost of collection, and N386.081 billion allocated for Transfers Intervention and Refunds.
The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for October 2023, was N347.343 billion, which was an increase from the N303.550 billion distributed in the preceding month, resulting in a increase of N43.793 billion.
From that amount, the sum of N10.894 billion was allocated for Cost of Collection and the sum of N10.003 billion given for Transfers, Intervention and Refunds. The remaining sum of N323.446 billion was distributed to the three tiers of government of which the Federal Government got N48.517 billion, the States received N161.723 billion, Local Government Councils got N113.206 billion.
Accordingly, the Gross Statutory Revenue of N660.090 billion received in the month was lower than than the sum of N1,014.953 trillion received in the previous month of September, 2023 by N354.863 billion. From that amount, the sum of N38.942 billion was allocated for Cost of Collection and a total sum of N316.078 billion for Transfers, Intervention and Refunds. The remaining balance of N305.070 billion was distributed as follows to the three tiers of government: Federal Government was allocated the sum of N147.574 billion, States got N74.852 billion, LGCs got N57.707 billion, and Oil Derivation (13% Mineral Revenue) got N24.937 billion.
Also, the sum of N16.199 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.333 billion, States got N7.776 billion, Local Government Councils received N5.443 billion and N0.647 billion was allocated for Cost of Collection.
The Communique disclosed N262.887 billion from Exchange Difference, which was shared as follows: Federal Government received N93.323 billion, the States got N47.334 billion, the sum of N36.493 billion allocated to Local Government Councils, and N25.737 billion given to Derivation (13% of Mineral Revenue) while the sum of N60.000 billion was for Transfers, Intervention and Refunds.
It disclosed that N60.000 billion Augmentation was shared as follows: the Federal Government got N31.608 billion, the States received N16.032 billion, while LGCs got the sum of N12.360 billion.
Petroleum Profit Tax (PPT), Import Duty, Value Added Tax (VAT), Customs External Tarrif (CET) and Electronic Money Transfer Levy (EMTL) increased significantly while, Excise Duties and Companies Income Tax (CIT) recorded considerable decreases. Oil and Gas Royalties decreased marginally.
According to the Communique, the total revenue distributable for the current month of October 2023, was drawn from Statutory Revenue of N305.070 billion, Value Added Tax (VAT) of N323.446 billion, N15.552 billion from Electronic Money Transfer Levy (EMTL), N202.887 billion from Exchange Difference and N60.000 billion Augmentation bringing the total distributable amount for the month to N906.955 billion.
The balance in the Excess Crude Account (ECA) as at November 22, 2023 stands at $473,754.57.
