July Allocation Rises by N151.6bn as FAAC Shares N954bn to FG, States, LGs

•Marks highest monthly allocation under Buhari  

•Excess Crude Account balance now $470,599.54

Ndubuisi Francis in Abuja

The recent increase in monthly distributable revenue to the three tiers of government continued in July as the Federation Account Allocation Committee (FAAC) yesterday shared the sum of N954.085 billion among the federal, state and local governments.

This represented an increase of N151.678 billion over the N802.407 billion shared in the preceding month of June.

It also indicated the highest monthly revenue shared by FAAC since the emergence of the incumbent administration under President Muhammadu Buhari.

Although no official explanation was given for the steady rise in monthly allocations in the last few months, facts on the ground point to significantly increasing haul in Companies Income Tax (CIT), Petroleum Profit Tax (PPT), Excise Duties and Oil and Gas Royalties.

In the same vein, the balance in the Excess Crude Account (ECA) which dropped from $35.37 million in the previous month to $376,655 in June, also rose to $470,599.54 in July.

A communiqué issued at the end of the FAAC meeting held in Abuja, yesterday, indicated that the N954.085 billion total distributable revenues for the month of July comprised distributable statutory revenue of N776.918 billion and distributable Value Added Tax (VAT) revenue of N177.167 billion.

The total deductions for cost of collection stood at N47.254 billion while deductions for transfers, savings and refunds was N255.762 billion.

Quoting the communique, the Director (Information, Press and Public Relations), Office of the Accountant General of the Federation, Henshaw Ogubike, stated that  from the total distributable revenue of N954.085 billion, the federal government received N406.610 billion, states received N281.342 billion, while the local government councils received N210.617 billion.

The sum of N55.515 billion was shared to the relevant states as 13 per cent derivation revenue.

Gross statutory revenue of N1,066.845 billion was received for the month of July 2022. This was higher than the sum of N1,012.065 billion received in the previous month by N54.780 billion. 

Also, from the N776.918 billion distributable statutory revenue, the federal government received N380.035 billion, states got N192.759 billion while the local government councils received N148.609 billion.

The sum of N55.515 billion was shared to the relevant states as 13 per cent derivation revenue.  

In July, the gross revenue available from VAT was N190.256 billion, which was lower than the N208.148 billion available in the month of June 2022 by N17.892 billion. 

From the N177.167 billion distributable VAT revenue, the federal government received N26.575 billion, the states received N88.584 billion and the local governments received N62.008 billion.

In the month under review, Companies Income Tax (CIT), Petroleum Profit Tax (PPT), Excise Duties and Oil and Gas Royalties recorded significant increases, while Import Duty and Value Added Tax (VAT) decreased considerably.