FAAC distributes N907bn to FG, states, LGAs

The Federation Account Allocation Committee (FAAC) has shared N907.054 billion as allocation to federal government, states and local government…

The Federation Account Allocation Committee (FAAC) has shared N907.054 billion as allocation to federal government, states and local government councils for the month of June.

This was contained in a communiqué issued at the end of the Federation Account Allocation Committee (FAAC) meeting for July 2023, according to Bawa Mokwa, Director Press and Public Relations at the Accountant General’s office.

The meeting was chaired by the Accountant General of the Federation, Dr Oluwatoyin Madein.

“The N907.054 billion total distributable revenue comprised distributable statutory revenue of N301.501 billion, distributable Value Added Tax (VAT) revenue of N273.225 billion, Electronic Money Transfer Levy (EMTL) revenue of N11.436 billion and Exchange Difference revenue of N320.892 billion.  

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“In June 2023, the total deductions for cost of collection was N73.235 billion and total deductions for savings, transfers and refunds was N979.078 billion.” 

The communiqué stated that from the total distributable revenue of N907.054 billion; the federal government received N345.564 billion, the state governments received N295.948 billion and the local government councils received N218.064 billion. A total sum of N47.478 billion was shared to the relevant states as 13% derivation revenue. 

Daily Trust had earlier projected that FAAC allocations will hit the N1 trillion mark from June allocation as a result of  fuel subsidy removal.

This paper understands that the total allocation accrued to federal, states and local governments was about N1.95 trillion for the month of June.

However state governors had earlier met in Abuja on Wednesday and endorsed the federal government’s proposal to only share N907 billion while the other N1 trillion will be saved in the country’s external reserves. 

The reason the governors agreed not to share the entire money was attributed to the rising inflation which may worsen if such huge amount is released into circulation, a source familiar with the matter told Daily Trust.

The Communique further stated that for the month of June 2023, the gross revenue available from the Value Added Tax (VAT) was N293.411 billion. This was higher than the N270.197 billion available in the month of May 2023 by N23.214 billion.   

Also, the federal government received N40.984 billion, the state governments received N136.613 billion and the local government councils received N95.629 billion from the N273.225 billion distributable Value Added Tax (VAT) revenue.

“The N11.436 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the federal government received N1.715 billion, the state governments received N5.718 billion and the local government councils received N4.003 billion.

“From the N320.892 billion Exchange Difference revenue, the federal government received N156.155 billion, the state governments received N79.204 billion, the local government councils received N61.063 billion and the sum of N24.470 billion was shared to the relevant States as 13 percent mineral revenue,” it added.