The Federation Account Allocation Committee (FAAC) has announced the sharing of N655.932 billion as the Federation Account Revenue for the month of April 2023. This allocation is distributed among the federal, state, and local governments, as stated in a communiqué issued at the end of the FAAC meeting held in May 2023. Stephen Kilebi, the Director of Press and Public Relations for FAAC, released a statement providing the details of the allocation.
The N655.932 billion comprises various components, including gross statutory revenue, value-added tax (VAT), exchange gain, electronic money transfer levies, and augmentations from forex and non-oil mineral revenue. Out of this amount, the Federal Government received N248.809 billion, the states received N218.307 billion, the local government councils obtained N160.600 billion, and the oil-producing states received N28.216 billion as derivation, which accounts for 13% of mineral revenue.
Regarding VAT, the gross revenue available for April 2023 amounted to N217.743 billion, representing a decrease compared to the previous month’s distribution. From this sum, N8.710 billion was allocated for collection costs, while N6.271 billion was allocated for transfers and refunds. The remaining balance of N202.762 billion was distributed among the three tiers of government. The Federal Government received N30.414 billion, the states obtained N101.381 billion, and the local government councils received N70.967 billion from the VAT revenue.
Furthermore, the gross statutory revenue for April 2023 was N497.463 billion, which was lower than the previous month’s figure of N638.673 billion. Out of this amount, N18.793 billion was allocated for the costs of collection, and N114.016 billion was set aside for transfers and refunds. The remaining balance of N364.654 billion was distributed as follows: the Federal Government received N180.659 billion, the states obtained N91.632 billion, the local government councils received N70.647 billion, and the oil derivation (13% of mineral revenue) obtained N21.716 billion.
In addition to these allocations, N15.121 billion from the Electronic Money Transfer Levy (EMTL) was also distributed among the three tiers of government. The Federal Government received N2.177 billion, the states obtained N7.258 billion, and the local government councils received N5.081 billion. An amount of N0.605 billion was allocated to cover the costs of collection.
The FAAC allocation for April 2023 reflects the ongoing efforts to distribute revenue equitably among the federal, state, and local governments in Nigeria. These funds play a vital role in supporting public services, development projects, and improving the overall welfare of the Nigerian people.