FAAC Disburses N906.955bn from N1.346tn Gross Revenue for Oct

Ndubuisi Francis in Abuja

The Federation Account Allocation Committee (FAAC), yesterday in Asaba, Delta State, shared a total sum of N906.955 billion to the three tiers of government for the month of October, 2023 from a gross total of N1,346.519 trillion.

The total distributable revenue was drawn from Statutory Revenue of N305.070 billion, Value Added Tax (VAT) of N323.446 billion, N15.552 billion from Electronic Money Transfer Levy (EMTL), N202.887 billion from Exchange Difference and N60.000 billion Augmentation.

Petroleum Profit Tax (PPT), Import Duty, VAT, Customs External Tarrif (CET) and

 Electronic Money Transfer Levy (EMTL) reportedly increased significantly in the month of Octobee while Excise Duties and Companies Income Tax (CIT) recorded considerable decreases.

Oil and gas royalties also decreased marginally.

The FAAC meeting where the disbursement took place was at the ongoing retreat in Asaba, which was presided over by Okokon Udo, the Permanent Secretary, Federal Ministry of Finance, who represented the Minister of Finance and Coordinating Minister of the Economy,  Mr. Wale Edun.

A statement from the Director (Press & Public Relations), Stephen Kilebi, cited a communique issued at the end of the FAAC meeting. It stated that the shared amount was inclusive of Gross Statutory Revenue, VAT, Electronic Money Transfer Levy (EMTL), Exchange Difference, and Augmentation of N60.000 billion.

At the end of the disbursement, the federal government received N323.355 billion, states got N307.717 billion, local government councils received N225.209 billion, while the oil producing states received N50.674 billion as 13 per cent derivation of mineral revenue.

The sum of N50.674 billion was for cost of collection and N386.081 billion allocated for ‘Transfers, Intervention and Refunds’

The gross revenue available from the VAT for October was N347.343 billion, which indicated an increase from the N303.550 billion distributed in the preceding month, resulting in an increase of N43.793 billion.

The sum of N10.894 billion was allocated for cost of collection and N10.003 billion given for Transfers, Intervention and Refunds.

The remaining sum of N323.446 billion was distributed to the three tiers of government with the federal government receiving N48.517 billion, states received N161.723 billion, and local governments got N113.206 billion.

According to the statement, the gross Statutory Revenue of N660.090 billion received in the month was lower than the sum of N1,014.953 trillion received in the previous month of September by N354.863 billion.

From that amount, the sum of N38.942 billion was allocated as cost of collection and N316.078 billion for Transfers, Intervention and Refunds.

The remaining balance of N305.070 billion was distributed to the three tiers of government.

The federal government was allocated the sum of N147.574 billion, states got N74.852 billion, local governments got N57.707 billion, and 13 per cent oil derivation accounted for N24.937 billion.

Also, the sum of N16.199 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three the federal government, states and local governments in the ratio of N2.333 billion, N7.776 billion and N5.443 billion respectively while N0.647 billion was allocated for cost of collection.

The sum of N262.887 billion which came from Exchange Difference was shared as follows: federal government -N93.323 billion; states – N47.334 billion, and local governments -N36.493 billion.

The sum of N25.737 billion was given to oil producing states as 13 per cent derivation while the sum of N60.000 billion was for Transfers, Intervention and Refunds.

The balance in the Excess Crude Account (ECA) as at November 22, 2023 stood at $473,754.57.