The Federation Account Allocation Committee (FAAC) has announced that it disbursed a total of N1.1 trillion among the three tiers of government in Nigeria for the month of August 2023.
This figure represents a significant increase of N192.46 billion compared to the N907.54 billion allocated in July 2023.
The committee made this disclosure in a communiqué issued at the conclusion of its September meeting in Abuja.
The N1.1 trillion (N1,100.101 billion) allocation is composed of various revenue sources, including total distributable statutory revenue of N357.39 billion, distributable value-added tax (VAT) revenue of N 321.94 billion, electronic money transfer levy (EMTL) revenue of N14.10 billion, exchange difference revenue of N 229.56 billion, and augmentation of N177.09 billion.
In total, FAAC reported that there was N1,483.902 billion in revenue available for distribution in August 2023. After deducting costs related to collection (N58.755 billion), transfers, and refunds (N254.046 billion), savings remained at N71 billion.
From the N1.1 trillion total distributable revenue, the federal government received a total of N431.24 billion, while the states were allocated N361.188 billion, and the local governments received N266.538 billion.
FAAC’s report for August indicates that the gross statutory revenue amounted to N891.934 billion, which was lower than the N1.15 trillion received in July 2023 by N258.49 billion.
From this statutory revenue, the federal government received N173.10 billion, states were allocated N87.8 billion, and local governments received N67.69 billion.
Regarding VAT revenue, FAAC reported an increase to N345.72 billion in August, compared to the N298.78 billion recorded in July, marking a N46.93 billion increase.
The federal government received N48.291 billion from VAT, states were allocated N160.97 billion, and local governments received N112.67 billion.
From the N14.10 billion electronic money transfer levy (EMTL) revenue, the federal government received N2.11 billion, states got N7.05 billion, and local governments were allocated N4.93 billion.
Additionally, the exchange difference revenue of N229.56 billion saw the federal government receiving N114.44 billion, states N58.04 billion, and local governments N44.75 billion.
Furthermore, N12.32 billion was allocated to the relevant states as a 13 percent derivation.
While VAT, import and excise duties, and EMTL increased considerably in August 2023, petroleum profit tax (PPT), companies income tax (CIT), and oil and gas royalties recorded significant decreases.
The balance in the excess crude account (ECA) remained at $473,754.57, according to FAAC’s report.
