FAAC: Allocation Declines As FG, States, LGs Share N736.8bn

The Federation Account Allocation Committee (FAAC), has shared the sum of N736.782 billion to the federal, states and local governments from the federally collected revenue in the month of October.

This represents a decline of N23.2 billion compared to the N760 billion shared for September.

A communique issued at the end of the FAAC meeting in Abuja, yesterday, indicated that the revenue was from various sources, including the Federation Account, proceeds of the Value Added Tax (VAT), Exchange Gain and augmentation from Non-Oil Revenue.

The breakdown of sources of funds indicated the Statutory Revenue stood at N417.724 billion, Value Added Tax (VAT) of N213.283 billion, Exchange Gain of N5.775 billion, and N100 billion Augmentation from non-oil Revenue, bringing the total distributable for the month to N736.782 billion.

The federal government received N293.955 billion, states N239.512 billion, local government councils N177.086 billion, while the oil producing states received an additional N26.228 billion as derivation, (13 per cent of Mineral Revenue).

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The Gross Revenue available from the VAT for October 2022 was distributed as follows: federal government, N31.992 billion, states received N106.642 billion, while LGs got N74.649 billion.

The FG got N206, 576 billion from the Statutory Revenue of N417.724 billion, States N104.778 billion, LGCs got N80.779 billion, and Oil Derivation (13 per cent Mineral Revenue) got N25.591 billion.

In order to meet the N700 billion monthly distribution threshold, N70 billion was add as augmentation.

It was shared as follows: FG received N36.876 billion, states got N18.704 billion, while the local government councils were given N14.420 billion.

Another extra N30 billion Augmentation from non-oil revenue was distributed as follows; federal government received N15.804 billion, the States got N8.016 billion, while the Local Government Councils received N6.180 billion.

The Communiqué also showed that the sum of N5.775 billion from Exchange Gain was shared thus: Federal Government received N2.707 billion, States got N1.373 billion, Local Government Councils received N1.058 billion and Derivation (13% of Mineral Revenue) got N0.637 billion.

The committee revealed that Oil and Gas Royalties, Petroleum Profit Tax (PPT) and Import Duty recorded considerable decreases, while Value Added Tax (VAT), and Companies Income Tax (CIT) increased significantly, while Excise Duty increased marginally.

Only $472.513 was the balance in the Excess Crude Account (ECA) as at yesterday, according the FAAC.