The Federation Account Allocation Committee (FAAC) has disbursed a total sum of N786.161 billion as May 2023 Federation Account Revenue to the Federal Government, State Governments, and Local Government Councils. This amount marks a slight increase compared to the N655.9 billion shared in the previous month. The details of the allocation were outlined in a communiqué issued at the end of the FAAC meeting for June 2023.
The N786.161 billion distributable revenue consisted of N519.545 billion as distributable statutory revenue, N251.607 billion as distributable Value Added Tax (VAT) revenue, N14.370 billion as Electronic Money Transfer Levy (EMTL), and N0.639 billion as Exchange Difference revenue.
During the month of May 2023, deductions for cost of collection totaled N38.238 billion, while deductions for transfers and refunds amounted to N163.193 billion. The balance in the Excess Crude Account (ECA) stood at $473,754.57.
The breakdown of the allocation revealed that out of the total distributable revenue of N786.161 billion, the Federal Government received N301.889 billion, the State Governments received N265.875 billion, and the Local Government Councils received N195.541 billion. Additionally, a total of N22.855 billion was shared among the relevant states as 13 percent derivation revenue.
Regarding the distributable statutory revenue of N519.545 billion, the Federal Government received N261.686 billion, the State Governments received N132.731 billion, and the Local Government Councils received N102.330 billion. Furthermore, N22.798 billion was shared to the relevant states as 13 percent derivation revenue.
In terms of Value Added Tax (VAT), the gross revenue available for May 2023 was N270.197 billion, indicating an increase of N52.454 billion compared to the previous month. From the N251.607 billion distributable VAT revenue, the Federal Government received N37.741 billion, the State Governments received N125.804 billion, and the Local Government Councils received N88.062 billion.
The Electronic Money Transfer Levy (EMTL) of N14.370 billion was shared, with the Federal Government receiving N2.155 billion, the State Governments receiving N7.185 billion, and the Local Government Councils receiving N5.030 billion. Additionally, the Exchange Difference revenue of N0.639 billion was allocated, with the Federal Government receiving N0.307 billion, the State Governments receiving N0.156 billion, and the Local Government Councils receiving N0.119 billion. A sum of N0.057 billion was also shared among the relevant states as 13 percent mineral revenue.
The communiqué further highlighted a significant increase in Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Value Added Tax (VAT), and Import and Excise Duties recorded during the month. However, Electronic Money Transfer Levy (EMTL) experienced a slight decrease.
The FAAC distribution of N786.161 billion in May 2023 reflects ongoing efforts to ensure the equitable allocation of revenue to various tiers of government, supporting financial stability and the provision of essential services across the country.
