• Friday, June 21, 2024
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BusinessDay

Federation account revenue drops to ₦1.74 trn as FG, states, LGs share N966 billion

Nigeria expects $10bn inflows in few weeks- Edun

Out of a total N1.74 trillion gross revenue in July, the Federation Account Allocation Committee (FAAC) shared N966.110 billion to the Federal, State and local government.

Businessday findings revealed that the total revenue of N1.74 trillion is a 10.8 percent decline from N1.95 trillion recorded in June 2023.

However, the total sum disbursed (N966.110 billion) is a slight increase compared to N907.054 billion disbursed in the previous month.

According to a communique issued at the end of FAAC meeting, the total sum disbursed comprised distributable statutory revenue of N397.419 billion, distributable Value Added Tax (VAT) revenue of N271.947 billion, Electronic Money Transfer Levy (EMTL) revenue of N12.840 billion and Exchange Difference revenue of N283.904 billion.

Read also: FAAC windfall: Eyes on squandermania governors

Of the total sum disbursed (N966.110 billion), the Federal Government received N374.485 billion, the State Governments received N310.670 billion and the Local Government Councils received N229.409 billion. A total sum of N51.545 billion was shared to the relevant States as 13 percent derivation revenue.

In July 2023, the total deductions for cost of collection was N62.419 billion and total deductions for savings, transfers, refunds and tax credit cancellation was N717.962 billion, and the balance in the Excess Crude Account (ECA) was $473,754.57.

Gross statutory revenue of N1.150 trillion was received for the month of July 2023, this was lower than the sum of N1.152 trillion received in the month of June 2023.

From the N397.419 billion distributable statutory revenue, the Federal Government received N190.489 billion, the State Governments received N96.619 billion and the Local Government Councils received N74.489 billion, while N35.822 billion was shared to the relevant States as 13 percent derivation revenue.

“For the month of July 2023, the gross revenue available from the Value Added Tax (VAT) was N298.789 billion. This was higher than the N293.411 billion available in the month of June 2023 by N5.378 billion.

“The Federal Government received N40.792 billion, the State Governments received N135.974 billion and the Local Government Councils received N95.181 billion from the N271.947 billion distributable Value Added Tax (VAT) revenue.

“The N12.840 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N1.926 billion, the State Governments received N6.420 billion and the Local Government Councils received N4.494 billion,” it stated.

The report also indicated a decline in the exchange difference revenue from N320.892 biilion in the previous month to N283.904 billion.

Of the total exchange difference revenue, the Federal Government received N141.278 billion, the State Governments received N71.658 billion, the Local Government Councils received N55.245 billion and the sum of N15.723 billion was shared to the relevant States as 13 percent mineral revenue.

Part of the Communique read, “in the month of July 2023, Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased considerably while Value Added Tax (VAT) increased marginally. Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and Oil and Gas Royalties recorded significant decreases.”

Wale Edun, the minister of finance and the co-ordinating minister of the economy who chaired the meeting noted that there was the need for government to mobilise resources to deliver on its mandate to increase employment and reduce poverty.

He stressed on the need for discipline in money supply to control inflation in the nation’s economy.