The Federation Account Allocation Committee (FAAC) announced that N1.35 trillion was distributed among the three tiers of government in June, reflecting an increase of N21 billion compared to the N1.14 trillion shared in May.
This was disclosed in a communiqué issued at FAAC’s July meeting, chaired by Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
According to the communiqué, the total distributable revenue for June from a gross total of N2.48 trillion included:
Statutory revenue: N142 billion
Value-added tax (VAT) revenue: N523 billion
Electronic money transfer levy (EMTL) earnings: N15 billion
Exchange difference revenue: N472 billion
Exchange difference and augmentation: N200 billion
The breakdown of the N1.35 trillion shared is as follows; Federal government – N459.7 billion, State governments – N461.9 billion, Local government councils – N337 billion and Oil-producing states (13% derivation) – N95.5 billion.
Additionally, N92.1 billion was allocated for the cost of collection, and N1.03 billion for transfer intervention and refunds.
FAAC reported that the gross revenue available from VAT for June was N562.6 billion, higher than the N497.6 billion available in May. From the distributable VAT revenue of N523 billion:
Federal government: N78.5 billion
State governments: N261.9 billion
Local government councils: N183.3 billion
The gross statutory revenue available for June was N142.5 billion. From this amount:
– Federal government: N48.9 billion
– State governments: N24.82 billion
– Local government councils: N19.14 billion
– Oil-producing states (13% derivation): N49.5 billion
For the EMTL revenue of N16.34 billion distributed, the breakdown was:
-Federal government: N2.3 billion
– State governments: N7.8 billion
– Local government councils: N5.4 billion
FAAC noted significant increases in Companies Income Tax (CIT) and VAT, with marginal increases in import and excise duties and EMTL. However, there were notable decreases in Petroleum Profit Tax (PPT), royalty crude, rentals, and Customs External Tariff (CET) levies.
The balance in the Excess Crude Account (ECA) as of July stands at $473,754.57.
