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FAAC shares N682.06bn allocation for August — highest in five months

FAAC shares N682.06bn allocation for August — highest in five months
September 18
02:26 2020

The federation accounts allocation committee (FAAC) shared N682.060 billion among the three tiers of government for the month of August.

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The three tiers of government met virtually for the monthly FAAC meeting.

This is the highest allocation made since April when N780.9 billion was shared between the three tiers of government.

According to Mahmud Isa-Dutse, permanent secretary at the federal ministry of finance, the federal government received N272.905 billion, state governments shared N197.648 billion while the 774 local government councils jointly shared N147.422 billion.

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He said the gross statutory revenue of N531.830 billion received for August 2020 was lower than the N543.788 billion received in the previous month by N11.958 billion.

However, the gross revenue from value-added tax (VAT) was N150.230 billion as against N132.619 billion available in the previous month, resulting in an increase of N17.611 billion.

Of the total VAT generated, the federal government received N20.957 billion, state governments received N69.857 billion, while the local government councils received N48.900 billion.

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The permanent secretary said the cost of revenue collection and transfers collectively had an allocation of N10.516 billion.

Oil-producing states also received N30.881 billion as 13 percent derivation revenue while N33.205 billion was allocated for revenue collection agencies as cost of revenue generation and transfers.

According to a statement released after the meeting, oil and gas royalty, companies income tax (CIT), import and excise duty and VAT increased considerably, while petroleum profit tax (PPT) decreased significantly.

The balance in the excess crude account (ECA) as of September 17, 2020, was $72.409 million.

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