FAAC Disburses N1.143tn As Federation Account Grossed over N2.324tn in May

Ndubuisi Francis in Abuja

The federation account grossed a total revenue of N2.324 trillion (N2,324.792 trillion) for the month of May, indicating a sizable increase of more than N132 billion over the N2,192.077 trillion posted in April.

However, the Federation Account Allocation Committee (FAAC) yesterday disbursed only N1.143 trillion of the revenue haul to the three tiers of government as Federation Account Revenue for the month of May.

The shared amount was about N65 billion less than N1.208 trillion disbursed in the preceding month of April.

Minister of Finance and Coordinating Minister of the Economy, Mr.  Wale Edun, presided over the FAAC meeting, which was held in Abuja.

Citing a communique issued at the end of the meeting, a statement by the Office of the Accountant-General of the Federation (OAGF) disclosed that the N1,143.210 trillion total distributable revenue comprised distributable statutory revenue of N 157.183 billion, distributable Value Added Tax (VAT) revenue of N463.425 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.146 billion, and Exchange Difference revenue of N507.456 billion.  

The statement said the total revenue of N2,324.792 trillion available in the month of May had total deduction for cost of collection standing at N76.647 billion, while total transfers, interventions, and refunds amounted to N1, 104.935 trillion. It revealed that gross statutory revenue of N1,223.894 trillion was received for May.

That was lower than the sum of N1,233.498 trillion received in April by N9.604 billion. 

VAT posted a gross revenue of N497.665 billion in May, an amount lower than the N500.920 billion available in April by N3.255 billion.  

The sharing ratio of the N1,143.210 trillion disbursed among the three tiers of government indicated that the federal government received a total sum of N365.813 billion, states got N388.419 billion, while the local governments received a total sum of N282.476 billion.

The sum of N106.502 billion or 13 per cent of mineral revenue was shared to the benefiting states as derivation revenue.

The federal government received N69.514 billion, states received N231.713 billion and the local government councils got N162.199 billion from the N463.425 billion distributable VAT revenue.

Similarly, a total sum of N2.272 billion was received by the federal government from the N15.146 billion Electronic Money Transfer Levy (EMTL). 

State governments received N7.573 billion and the local government councils received N5.301 billion.

From the N507.456 billion Exchange Difference revenue, the federal government received N233.017 billion, the state governments received N118.189 billion, while the local government councils received N91.119 billion.

 A total sum of N65.131 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

According to the communiqué, in the month of May, Companies Income Tax Oil (CIT) and Petroleum Profit Tax (PPT) increased significantly while Import and Excise Duties, Royalty Crude and Gas, Electronic Money Transfer Levy (EMTL), CET Levies and VAT recorded considerable decreases.         

The balance in the Excess Crude Account (ECA) remained stagnant at $473,754.57.