FAAC Records N1.594trn In September, Disburses N903bn To 3 Tiers Of Govt

The Federation Account Allocation Committee (FAAC) has announced a N1,594,763 trillion revenue from September 2023. This the second time the government is having higher revenue accrual since removal of fuel subsidy in May.

FAAC said in a statement that it approved a total sum of N903.480 billion from the available revenue for disbursement to federal government, states and local government areas. Apart from oil sales, the federal government received N186.813 billion revenue from exchange difference.

A communique issued by FAAC at its October, 2023 meeting indicated that the N903.480 billion total distributable revenue comprised distributable statutory revenue of N423.012 billion, distributable Value Added Tax (VAT) revenue of N 282.666 billion, electronic money transfer levy revenue of N10.989 billion.

According to the communique, total deductions for cost of collection was N54.426 billion, total transfers and refunds was N347.857 billion and savings was N289.000 billion.

The balance in the Excess Crude Account (ECA) was $473,754.57.

Gross statutory revenue of N 1,014,953 billion was received for the month of September 2023. This was higher than the N891.934 billion received in the month of August 2023 by N123.019 billion.

The gross revenue available from the Value Added Tax (VAT) was N303.550 billion, director of information in Office of Accountant-general of the Federation, Bawa Mokwa said in a statement yesterday. The figure is lower than the N345.727 billion available in the month of August 2023 by N42.177 billion.

The communique stated that from the N903.480 billion total distributable revenue, the Federal Government received a total of N320.543 billion, the state governments received N287.071 billion and the Local Government Councils received N210.900 billion.

A total sum of N84.966 billion (13 per cent of mineral revenue) was shared to the relevant States as derivation revenue.

From the N423.012 billion distributable statutory revenue, the federal government received N190.849 billion, the state governments received N96.801 billion and the local government governments received N74.629 billion. The sum of N60.733 billion (13 per cent of mineral revenue) was shared to the relevant States as derivation revenue.

The federal government received N42.400 billion, the State Governments received N141.333 billion and the local government areas received N98.933 billion from the N282.666 billion distributable VAT revenue.

The N10.989 billion electronic money transfer was shared as follows: the federal government received N1.648 billion, the state governments received N5.495 billion and the LGAs received N3.846 billion.

The FG received N85.647 billion from the N186.813 billion exchange difference revenue.  The States received N43.442 billion, and the LGAs received N33.491 billion. The sum of N24.233 billion (13 percent of mineral revenue) went to the relevant States as derivation revenue.

In the month of September 2023, petroleum profit tax and oil and gas royalties increased considerably while VAT, import and excise duties, electronic money transfer levy, companies income tax (CIT) and CET levies recorded significant decreases.