The Minister of Finance, Zainab Ahmed
Nigeria's Minister of Finance, Zainab Ahmed speaking on the Economic Recovery Growth Plan

The Federation Account Allocation Committee (FAAC) disbursed the sum of N788.14 billion to the three tiers of government in November 2018 from the revenue generated in October 2018.

The amount disbursed comprised of N682.16 billion from the Statutory Account, N105.17 billion from Valued Added Tax (VAT) and N806 million as exchange gain allocation.

Federal government received a total of N299.19 billion from the N788.14 billion. States received a total of N194.92 billion and Local governments received N146.69 billion.

N58.19 billion was shared among the oil producing states as 13% derivation fund while N70 billion was transferred to Excess crude Account(ECA).

Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N4.99 billion, N7.59 billion and N5.82 billion respectively as cost of revenue collections.

Which states got the largest FAAC allocation ? 

Delta State got the largest allocation for the period under review with a net FAAC allocation of N20.9 billion. Akwa Ibom was next with a net allocation of N18.4 billion. Rivers State was next with a net allocation of N15.3 billion.

Which states had the smallest FAAC allocation ? 

Osun state had the smallest FAAC allocation at N2.1 billion. Cross River was next with a net allocation of N3.2 billion. Ogun State takes third place with a net allocation of N3.5 billion.

FAAC is a joint committee consisting of representatives of the Federal, State and Local governments. The committee meets monthly during which revenues are shared. Sources of income for FAAC include oil revenue and taxes, customs and excise taxes, company income taxes (CIT), any sale of national assets, and surpluses from state-owned enterprises.

The Federal government gets 52.68% of all revenue, while states and local governments get 26.72% and 20.60% respectively. Revenues from Value Added tax (VAT) are shared differently, with the Federal Government getting 15%, States 50% and Local Governments 35%.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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