THE federal government, states, and local government councils (LGCs) received N2.001 trillion as federation allocation for July.
The Federation Account Allocation Committee (FAAC) revealed this during its August meeting held in Abuja, according to a statement on Friday, August 22, from the Office of the Accountant-General of the Federation (OAGF) by its director, press and public relations, Bawa Mokwa.
It showed that the July allocation represents a N183 billion increase from the N1.818 trillion shared in June.
The N2.001 trillion revenue distributed to the tiers of government comprised N1.282 trillion from statutory revenue, N640.610 billion from value-added tax (VAT), N37.601 billion from electronic money transfer levy (EMTL), and N39.745 billion from exchange difference.
Gross revenue available was N3.836 trillion, total deductions for the cost of collection stood at N152.681 billion, and total transfers, interventions, refunds, and savings at N1.683 trillion.
Also, gross statutory revenue stood at N3.070 trillion, lower than the N3.485 trillion recorded in June.
From the N2.001 trillion distributable revenue, the federal government received N735.081 billion, the states got N660.349 billion, and LGCs received N485.039 billion.
It added that 13 per cent of mineral revenue, amounting to N120.359 billion, was shared as derivation revenue to benefiting states.
Also, Petroleum profit tax (PPT), oil and gas royalties, EMTL, and excise duty recorded significant increases.
While VAT and import duty rose marginally, companies’ income tax (CIT) and CET levies declined.
The ICIR reports that, at a press briefing on Monday, August 18, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) said it has begun a fresh review of the revenue-sharing formula for the tiers of government.
Its review comes about three decades after the formula was last adjusted.
At present, the revenue distribution stands at 52.6 per cent for the federal government, 26.7 per cent to states, and 20.6 per cent to LGCs.
According to RMAFC, the review seeks to produce a “fair, just, and equitable” formula that reflects the constitutional responsibilities, financial needs, and capacities of the three tiers of government.