The Federation Account Allocation Committee (FAAC) says it shared N906.96 billion among the three tiers of government for October 2023.
FAAC disclosed this in a communiqué issued at the end of its latest meeting, according to a statement by the Director (Press and Public Relations) of the Ministry of Finance, Stephen Kilebi, on Wednesday.
The total figure shared for October represents a slight increase of N3.48 billion compared to the N903.48 billion shared for September 2023, recovering from a decrease recorded in the previous month.
The total amount includes gross statutory revenue, Value Added Tax (VAT), Augmentations from Forex and Non-oil Mineral Revenue, and electronic money transfer levy (EMTL), among others.
Revenue generated
Although a gross total of N1.35 trillion was generated, only N906.955 billion was shared with the three tiers of government as Federation Allocation for the month of October 2023.
According to the Communique, the total revenue distributable for October 2023, was drawn from Statutory Revenue of N305.070 billion, VAT of N323.446 billion, EMTL of N15.552 billion, Exchange Difference of N202.887 billion and Augmentation of N60.000 billion, bringing the total distributable amount for the month to N906.955 billion.
Breakdown of revenue shared
From the total revenue from Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference, and Augmentation of N60 billion, the Federal Government received N323.355 billion, the States received N307.717 billion, the Local Government Councils got N225.209 billion, while the Oil Producing States received N50.674 billion as Derivation, (13% of Mineral Revenue).
The statement provided a further breakdown to include:
- “The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for October 2023, was N347.343 billion, which was an increase from the N303.550 billion distributed in the preceding month, resulting in an increase of N43.793 billion.
- “From that amount, the sum of N10.894 billion was allocated for the Cost of Collection and the sum of N10.003 billion was given for Transfers, Intervention and Refunds. The remaining sum of N323.446 billion was distributed to the three tiers of government of which the Federal Government got N48.517 billion, the States received N161.723 billion, and Local Government Councils got N113.206 billion.
- “Accordingly, 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 2023 by N354.863 billion. From that amount, the sum of N38.942 billion was allocated for the Cost of Collection and a total sum of N316.078 billion for Transfers, Intervention and Refunds. The remaining balance of N305.070 billion was distributed as follows to the three tiers of government: Federal Government was allocated the sum of N147.574 billion, States got N74.852 billion, LGCs got N57.707 billion, and Oil Derivation (13% Mineral Revenue) got N24.937 billion.
- “Also, the sum of N16.199 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.333 billion, States got N7.776 billion, Local Government Councils received N5.443 billion and N0.647 billion was allocated for Cost of Collection.
- “The Communique disclosed N262.887 billion from Exchange Difference, which was shared as follows: Federal Government received N93.323 billion, the States got N47.334 billion, the sum of N36.493 billion allocated to Local Government Councils, and N25.737 billion given to Derivation (13% of Mineral Revenue) while the sum of N60.000 billion was for Transfers, Intervention and Refunds.
- “It disclosed that N60.000 billion Augmentation was shared as follows: the Federal Government got N31.608 billion, the States received N16.032 billion, while LGCs got the sum of N12.360 billion.”
Also, the balance in the Excess Crude Account (ECA) stayed at $473,754.57 as of November 22, 2023.
The communiqué further revealed that N50.674 billion was given for the cost of collection, and N386.081 billion was allocated for Transfers Intervention and Refunds.
Petroleum Profit Tax (PPT), Import Duty, VAT, Customs External Tariff (CET) and EMTL increased significantly.
However, Excise Duties, Oil and Gas Royalties and Companies Income Tax (CIT) recorded a decrease in
The FAAC’s Retreat and Meeting was held at Asaba, Delta State, and was chaired by Wale Edun, the Honourable Minister of Finance and Co-ordinating Minister of the Economy who was represented by Okokon Udo, the Permanent Secretary Federal Ministry of Finance.
