The Federation Account Allocation Committee (FAAC) has disbursed a total of N966.110 billion to the Federal Government, State Governments, and Local Government Councils as the Federation Account Revenue for July 2023.
The official communiqué issued at the conclusion of the FAAC meeting for August 2023 outlined the distribution details. Of the total distributable revenue, the Federal Government received N374.485 billion, the State Governments received N310.670 billion, and the Local Government Councils received N229.409 billion.
Furthermore, N51.545 billion was allocated to relevant states as 13% derivation revenue.
Chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the FAAC meeting focused on ensuring transparency and fairness in revenue distribution.
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The total distributable revenue of N966.110 billion encompassed various components: N397.419 billion in distributable statutory revenue, N271.947 billion in distributable Value Added Tax (VAT) revenue, N12.840 billion in Electronic Money Transfer Levy (EMTL) revenue, and N283.904 billion in Exchange Difference revenue.
Deductions for cost of collection amounted to N62.419 billion, while deductions for savings, transfers, refunds, and tax credit cancellation totaled N717.962 billion. The balance in the Excess Crude Account (ECA) stood at $473,754.57.
In terms of specific revenue streams, gross statutory revenue for July 2023 amounted to N1,150.424 billion, slightly lower than the N1,152.921 billion received in June 2023 by N2.497 billion. Distributable statutory revenue of N397.419 billion was divided among the Federal Government (N190.489 billion), State Governments (N96.619 billion), and Local Government Councils (N74.489 billion). An additional N35.822 billion was shared as 13% derivation revenue.
The VAT revenue saw an increase, with N298.789 billion available for distribution in July 2023, compared to N293.411 billion in June 2023.
The Electronic Money Transfer Levy (EMTL) of N12.840 billion was divided between the Federal Government (N1.926 billion), State Governments (N6.420 billion), and Local Government Councils (N4.494 billion).
Additionally, the Exchange Difference revenue of N283.904 billion was allocated as follows: Federal Government (N141.278 billion), State Governments (N71.658 billion), and Local Government Councils (N55.245 billion), with N15.723 billion shared as 13% mineral revenue.
The communiqué highlighted fluctuations in various revenue streams, with Import and Excise Duties and Electronic Money Transfer Levy (EMTL) showing substantial increases, while VAT experienced a marginal rise. Conversely, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), and Oil and Gas Royalties saw significant decreases.