Forex Gains Boost Revenues As FAAC Shares N1.1trn To 3 Tiers

The Federation Account Allocation Committee (FAAC) has shared a total sum of N1.101 trillion revenue that was generated in August of 2023 to the three tiers of government, being monthly allocation from the joint federation account.

Disbursement from the Federation Account Allocation Committee (FAAC) to the federal, state and local governments surged to N1.1 trillion in September as

The FAAC report sent out Friday morning showed that the disbursement is the highest this year and in a long time, as government income was boosted by foreign exchange gains.

Despite the recent increase in monthly revenue income, the balance in the excess crude account (ECA) has remained $473,754.57.

A communique issued by FAAC at its September, 2023 meeting yesterday, showed that a total revenue of N1, 483, 902 trillion was available in the month of August 2023.  Total deductions for cost of collection was N58.755 billion, total transfers and refunds was N254.046 billion and savings was N71.000 billion.

The communique indicated that the N1.1 trillion total distributable revenue is comprised of distributable statutory revenue of N357.398 billion, N321.941 billion raised from Value Added Tax (VAT), N14.102 billion generated from electronic money transfer levy, N229.568 billion that came in from exchange rate differential, and augmentation of NN177.092 billion.

Gross statutory revenue of N891.934 billion was received for the month of August 2023. This was lower than the N1, 150, 424 trillion received in the month of July 2023 by N258.490 billion.

The gross revenue available from the VAT was N345.727 billion. This was higher than the N298.789 billion available in the month of July 2023 by N46.938 billion.

The communique stated that from the N1.1 trillion total distributable revenue, the federal government received a total of N431.245 billion, 36 states and the FCT received N361.188 billion, while the local government areas got N266.538 billion.

A total sum of N26.473 billion (13 percent of mineral revenue) and N14.657 billion (13 percent of savings from NNPCL), were shared to the relevant States as derivation revenue.

From the N357.398 billion distributable statutory revenue, the federal government received N173.102 billion, the state governments received N87.800 billion and the local government areas received N67.690 billion.

From the N321.941 billion VAT revenue for the month, federal government received N48.291 billion, states received N160.971 billion, while the LGAs got N112.679 billion.

The available N14.102 billion electronic transfer levy was shared as follows: federal government: N2.115 billion; state governments: N7.051 billion, and LGAs: N4.936 billion.

A breakdown of the figures that were shared by director of press in the office of the accountant-general of the federal, Bawa Mokwa showed that federal government took N114.445 billion from the N229.568 billion that came in from exchange differential, while all the state governments received N58.048 billion, with the LGAs receiving N44.752 billion. The sum of N12.027 billion (13 percent of mineral revenue) and N0.296 billion (13 percent of savings from NNPCL) went to the relevant States as derivation revenue.

From the N177.092 billion augmentation, the federal government received N93.292 billion, the states received N47.319 billion and the local governments N36.481 billion.