Nigeria’s FAAC Shares N1.1tn Between Federal, States and Local Govts in August Revenue

The Federation Account Allocation Committee (FAAC) distributed a combined total of N1.1 trillion as revenue from the Federation Account for the month of August. This amount, which was allocated to the federal, state, and local governments, represents an increase of N133.991 billion compared to the N966.110 billion distributed in the previous month of July.

The Office of the Accountant General of the Federation (OAGF) released a statement citing a communiqué issued by the Federation Account Allocation Committee (FAAC) following its September meeting. The statement revealed that a total distributable revenue of N1,100.101 trillion was allocated.

1. This allocation included:
2. Distributable statutory revenue of N357.398 billion.
3. Distributable Value Added Tax (VAT) revenue of N321.941 billion.
4. Electronic Money Transfer Levy (EMTL) revenue of N14.102 billion.
5. Exchange Difference revenue of N229.568 billion.
6. Augmentation of N177.092 billion.

According to the statement, in August, a total revenue of N1,483.902 trillion was available, and various deductions and transfers were made. Here are the details:

1. The cost of collection deductions amounted to N58.755 billion.
2. Total transfers and refunds stood at N254.046 billion.
3. Savings amounted to N71.000 billion.

The gross statutory revenue for August 2023 was N891.934 billion. This figure was lower than the N1,150.424 billion received in July 2023, reflecting a decrease of N258.490 billion.

“The gross revenue available from the Value Added Tax (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 communiqué stated that from the N1100.101 billion total distributable revenue, the federal government received a total of N431.245 billion, the state governments received N361.188 billion and the local government councils received N266.538 billion.

“A total sum of N26.473 billion (13% of mineral revenue) and N14.657 billion (13% of savings from NNPCL), were shared to the relevant states as derivation revenue.” the statement said.

The distribution of revenues for the month of August is as follows:

1. From the N357.398 billion distributable statutory revenue:
2. The federal government received N173.102 billion.
3. State governments received N87.800 billion.
4. Local government councils received N67.690 billion.

From the N321.941 billion distributable Value Added Tax (VAT) revenue:

1. The federal government received N48.291 billion.
2. State governments got N160.971 billion.
3. Local government councils received N112.679 billion.

The N14.102 billion Electronic Money Transfer Levy (EMTL) was also shared:

1. The federal government received N2.115 billion.
2. State governments received N7.051 billion.
3. Local government councils received N4.936 billion.

Additionally, the federal government received N114.445 billion from the N229.568 billion Exchange Difference revenue.

“The state governments received N58.048 billion, and the local government councils received N44.752 billion. The sum of N12.027 billion (13% of mineral revenue) and N0.296 billion (13 % 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 state governments received N47.319 billion and the local Government councils received N36.481 billion.

“In the month of August 2023, Value Added Tax (VAT), Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased considerably while Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties recorded significant decreases,” the statement indicated, adding that the balance in the Excess Crude Account (ECA) stood at $473,754.57 million as at September 27, 2023.

The increased revenue for the three tiers of government reflects the effect of the removal of fuel subsidy and the recent rise in oil prices.