The Federation Account Allocation Committee (FAAC) has announced the sharing of N907.05bn among the three government tiers forThursday’s latest FAAC meeting in Abuja June 2023. This figure represents a marginal increase of N120.89bn compared to the N786.16bn shared in May 2023. It marks the highest allocation recorded this year and the second increase after a continuous decline since January.
The disclosure was made in a communiqué issued at the end of the latest FAAC meeting in Abuja on Thursday. The meeting was chaired by Dr Oluwatoyin Madein, the new Accountant General of the Federation.
However, an observation by The PUNCH revealed that the increase recorded for May was higher than that of June, despite the fuel subsidy removal.
The total amount distributed includes gross statutory revenue, Value Added Tax (VAT), electronic money transfer levies, and exchange rate difference revenue.
According to the communique, “The N907.05bn total distributable revenue comprised distributable statutory revenue of N301.50bn, distributable Value Added Tax revenue of N273.23bn, Electronic Money Transfer Levy revenue of N11.44bn, and Exchange Difference revenue of N320.89bn.”
In the breakdown of the distribution, the Federal Government received N345.56bn, the states received N295.95bn, and the local government councils were allocated N218.06bn. Additionally, the oil-producing states received N47.48bn as derivation (13 per cent of mineral revenue).
The communique also revealed that a gross statutory revenue of N1.15tn was received for the month of June 2023, marking an increase of N451.13bn compared to the previous month’s sum of N701.79bn.
Further elaborating on the distribution of statutory revenue, the communique stated, “From the N301.50bn distributable statutory revenue, the Federal Government received N146.71bn, the State Governments received N74.41bn, and the Local Government Councils received N57.37bn. The sum of N23.01bn was shared with the relevant states as 13 per cent derivation revenue.”
Regarding Value Added Tax, June 2023 saw a total revenue of N293.41bn, which was N23.21bn higher than the N270.2bn recorded in May 2023. The Federal Government received N40.98bn, the State Governments received N136.61bn, and the Local Government Councils received N95.63bn from the distributable Value Added Tax revenue of N273.23bn.
The Electronic Money Transfer Levy of N11.44bn was shared with the Federal Government receiving N1.72bn, State Governments receiving N5.72bn, and Local Government Councils receiving N4bn.
Furthermore, the N320.89bn Exchange Difference revenue was distributed as follows: the Federal Government received N156.16bn, State Governments received N79.20bn, Local Government Councils received N61.06bn, and a sum of N24.47bn was shared with the relevant states as 13 per cent mineral revenue.
Additionally, the total deductions for the cost of collection in June 2023 were N73.24bn, while the total deductions for savings, transfers, and refunds amounted to N979.08bn.
The FAAC meeting’s outcome indicates a positive trajectory in revenue generation, with the government set to allocate funds to various levels for developmental purposes and service delivery across the nation.
