The Federation Account Allocation Committee (FAAC) reported on Tuesday that it shared a total sum of N966.110 billion from accruals to the Federation Account to the three tiers of government in July this year.
The Committee made this disclosure in the communiqué issued at the end of its meeting for August 2023 chaired by the new Minister of Finance and Coordinating Minister of the Economy, Dr. Wale Edun.
It stated that the N966.110 billion total distributable revenue comprised distributable statutory revenue of N397.419 billion, distributable Value Added Tax (VAT) revenue of N271.947 billion, Electronic Money Transfer Levy (EMTL) revenue of N12.840 billion and Exchange Difference revenue of N283.904 billion.
The communique showed that the total deductions for cost of collection was N62.419 billion and total deductions for savings, transfers, refunds and tax credit cancellation was N717.962 billion while
the balance in the Excess Crude Account (ECA) stood at $473,754.57 as of the date of the committee’s meeting
The communiqué stated that from the total distributable revenue of N966.110 billion; the Federal Government received N374.485 billion, the State Governments received N310.670 billion and the Local Government Councils received N229.409 billion. A total sum of N51.545 billion was shared to the relevant States as 13% derivation revenue.
According to the FAAC, gross statutory revenue of N1150.424 billion was received for the month under review, representing N2.497 billion lower than the N1152.921 billion received in the month of June this year.
Out of the N397.419 billion distributable statutory revenue, the FAAC reported that the Federal Government received N190.489 billion, the State Governments received N96.619 billion and the Local Government Councils received N74.489 billion. The sum of N35.822 billion was shared to the relevant States as 13% derivation revenue.
It also disclosed that in July, the gross revenue available from the Value Added Tax (VAT) was N298.789 billion. This was higher than the N293.411 billion available in the month of June 2023 by N5.378 billion.
The communiqué further stated: “The Federal Government received N40.792 billion, the State Governments received N135.974 billion and the Local Government Councils received N95.181 billion from the N271.947 billion distributable Value Added Tax (VAT) revenue.
“The N12.840 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N1.926 billion, the State Governments received N6.420 billion and the Local Government Councils received N4.494 billion.
“From the N283.904 billion Exchange Difference revenue, the Federal Government received N141.278 billion, the State Governments received N71.658 billion, the Local Government Councils received N55.245 billion and the sum of N15.723 billion was shared to the relevant States as 13 percent mineral revenue”, it added.
The communiqué further reflected that in the month under review, Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased considerably while Value Added Tax (VAT) increased marginally. Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and Oil and Gas Royalties recorded significant decreases.
