FEDERATION revenue distributed by the Federation Account Allocation Committee (FAAC) to the federal government, 36 state governments, and 774 local government councils (LGCs) dropped to N1.659 trillion in May.

It represents a decrease of N22 billion from the N1.681 trillion shared in April.

The Office of the Accountant General of the Federation disclosed this in a statement on Wednesday, June 18, by the director of press and public relations, Bawa Mokwa.

It stated that the total revenue was shared among the three tiers of government in line with the revenue-sharing formula.

The distributable revenue consisted of N863.895 billion statutory revenue, N691.714 billion Value Added Tax (VAT) revenue, N27.667 billion electronic money transfer levy (EMTL), and N76.614 billion exchange difference revenue.

The total gross revenue for May stood at N2.942 trillion, which was, however, higher than N2.084 trillion for April.

But after deductions of N111.908 billion for cost of collection and transfers, interventions, and N1.171 trillion for refunds, the distributable revenue came to N1.659 trillion.

From the N1.659 trillion, the federal government received N538.004 billion, states got N577.841 billion, and LGCs were allocated N419.968 billion.

States benefiting from the 13 per cent mineral revenue got additional N124.076 billion as derivation revenue.

In the review month, significant increases were recorded from revenues from companies’ income tax (CIT), VAT, and import duty, while several other levies experienced a decline.

The ICIR can report that since the removal of the petrol subsidy in May 2023, the federal, state, and  LGCs have seen a sharp increase in the monthly revenue allocation from FAAC, which is expected to ensure a steady flow of funds to support their operations at various levels.