FAAC allocation to tiers of government increased by N59bn in July

THE Federation Account Allocation Committee (FAAC) says it shared N966.110 billion among the three tiers of government in July out of a total gross revenue of N1.746 trillion.

The July allocation shows an increase of N59.06 billion compared to N907.05 billion shared in June.

Details of the allocation were contained in the communiqué issued at the end of the FAAC meeting on Tuesday, August 22, chaired by the new minister of finance and coordinating minister of the economy, Wale Edun.

It stated that the federal government received N374.485 billion, the states N310.670 billion, and the local government councils (LGCs) received N229.409 billion.

In addition, oil-producing states received N51.545 billion as derivation, which represents 13 per cent of mineral revenue.

The amount shared includes gross statutory revenue, value-added tax (VAT), electronic money transfer levy (EMTL), and exchange difference.

According to FAAC, the gross revenue available from the VAT was N298.789 billion, an increase from the N293.411 billion distributed in the preceding month.

From that amount, N11.681 billion was allocated for collection costs, and N15.161 billion was given for savings, transfers and refunds.

The remaining sum of N271.947 billion was distributed, of which the federal government received N40.792 billion, states received N135.974 billion, and LGCs got N95.181 billion.

The gross statutory revenue of N1.150 trillion received for the month was lower than N1.152 trillion received in June, FAAC disclosed.

A sum of N50.203 billion was allocated for costs of collection and a total sum of N702.801 billion for savings, transfers and refunds. At the same time, the remaining balance of N397.419 billion was distributed to the tiers of government.

The federal government got N190.489 billion; states, N96.619 billion; and LGCs, N74.489 billion, while N35.822 billion is 13 per cent oil derivation.

Details of the disbursement also showed FAAC shared N13.375 billion sum from EMTL to the federal government, N1.926 billion; states, N6.420 billion; LGCs, N4.494 billion, while N0.535 billion for collection costs.

Further, it shared the sum of N283.904 billion from exchange difference with the federal government receiving N141.278 billion; states, N71.658 billion; and LGCs, N55.245 billion, while N15.723 billion for 13 per cent derivation of mineral revenue.

According to the committee, revenues from company income tax (CIT), petroleum profit tax (PPT) and oil and gas royalties significantly declined, but revenues from import and excise duties and EMTL increased considerably while VAT increased marginally.

It said the total revenue distributable for July was drawn from statutory revenue of N397.419 billion; VAT, N271.947 billion; EMTL, N12.840 billion; and exchange difference, N283.904 billion, which brought the total distributable amount to N966.110 billion.

The committee, however, hinted that the balance in the excess crude account (ECA) as of August 22 is $473,754.57.

The government needs to mobilise resources to deliver on its mandate to increase employment and reduce poverty, Edun said, adding that there should be discipline in the money supply to control inflation in the nation’s economy.

Nigeria’s inflation throttled to 24.08 per cent in July, and it could worsen to 28 per cent by year end, according to a recent analysis by JP Morgan.

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