TheCable

The Federation Account Allocation Committee (FAAC) says it shared the sum of N966.11 billion among the three tiers of government in July 2023.

The committee disclosed this in a communique issued after its latest meeting in Abuja on Tuesday, according to a statement by Stephen Kilebi, director, press and public relations at the Ministry of Finance.

The meeting was chaired by Wale Edun, the minister of finance and the coordinating minister of the economy.

The July disbursement is higher than the amount (N907.05 billion) shared in June by N59.06 billion (6.5 percent).

The total amount shared includes funds from gross statutory revenue, value-added tax (VAT), electronic money transfer levies (EMTL), and exchange rate difference revenue, the committee said.

“The N966.11bn total distributable revenue comprised distributable statutory revenue of N397.42bn, distributable Value Added Tax revenue of N271.95bn, Electronic Money Transfer Levy revenue of N12.84bn and Exchange Difference revenue of N283.904bn,” the communiqué reads.

FAAC said from the total distributable revenue of N966.11 billion, the federal government received N374.49 billion, the state got N310.67 billion and the local governments were given N229.41 billion.

According to the committee, a total sum of N51.55 billion was shared with the relevant states as 13 percent derivation revenue.

The panel also disclosed that gross statutory revenue of N1.150 trillion was received for the month of July 2023, which was lower than the sum of N1.152 trillion received in the month of June 2023 by N2.5 trillion.

FAAC said from the N397.42 billion distributable statutory revenue, the federal government got N190.49 billion, the states received N96.62 billion, the local governments were allocated N74.49 billion, while N35.82 billion was shared with the relevant states as 13 percent derivation revenue.

The committee also said the gross revenue from VAT was N298.79 billion — higher than the N293.41 billion recorded in the month of June 2023 by N5.38 billion.

From the VAT revenue, the communique said, N40.79 billion was given to the federal government; N135.97 billion was allocated to the states, while the local governments got N95.18 billion.

In addition, out of the N12.84 billion EMTL, the federal government got N1.93 billion, the states received N6.42 billion and the local governments were given N4.49 billion.

FAAC also disclosed that from the N283.9 billion exchange difference revenue, the federal government received N141.28 billion, and the states got N71.66 billion.

While N55.25 billion was allocated to the local governments, N15.72 billion was shared with the relevant states as 13 percent mineral revenue.

‘DISCIPLINE IN MONEY SUPPLY NEEDED TO CONTROL INFLATION’

In the communiqué, FAAC also said import and excise duties and EMTL increased considerably, while VAT recorded a marginal increase.

On the flip side, the petroleum profit tax, companies income tax (CIT), and oil and gas royalties recorded significant decreases.

FAAC noted that N62.42 billion was deducted as cost of collection, while N717.96 billion was deducted for savings, transfers, refunds, and tax credit cancellation.

As at August 22, 2023, the balance in the excess crude account was maintained at $473,754.57.

Meanwhile, in the statement by Kilebi, Edun “advised that there should be discipline in money supply to control inflation in the nation’s economy.”

The finance minister said there was a need for government to mobilise resources to deliver on its mandate to increase employment and reduce poverty.