• Wednesday, February 28, 2024
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Federation account’s monthly allocation drops by N58.6bn

FAAC shares N656 billion to FG, states, LG in April 2022

Monthly allocation to the federal, state and local governments dropped by N58.6 billion in April as the Federation Account Allocation Committee (FAAC), shared a total sum of N655.932 billion to the three tiers of government for the month of April, 2023.

This is an 8 percent decrease from the N714.62 billion shared in March.

According to a communiqué issued at the end of the Committee’s meeting for May 2023, the N655.932 billion total distributable revenue comprised distributable statutory revenue of N364.654 billion, distributable Value Added Tax (VAT) revenue of N202.762 billion, Electronic Money Transfer Levy (EMTL) of N14.516 billion, N50.000 billion augmentation from Forex Equalization revenue and N24.000 billion augmentation from the Non-mineral revenue.

It added that in April 2023, the total deductions for cost of collection was N28.108 billion and total deductions for transfers and refunds was N120.287 billion while the balance in the Excess Crude Account (ECA) was $473,754.57.

The communiqué stated that from the total distributable revenue of N655.932 billion; the Federal Government received N248.809 billion, the State Governments received N218.307 billion and the Local Government Councils received N160.600 billion. A total sum of N28.216 billion was shared to the relevant States as 13 percent derivation revenue.

“Gross statutory revenue of N497.463 billion was received for the month of April 2023. This was lower than the sum of N638.673 billion received in the previous month by N141.210 billion,” it stated.

Also from the N364.654 billion distributable statutory revenue, the Federal Government received N180.659 billion, the State Governments received N91.632 billion and the Local Government Councils received N70.647 billion. The sum of N21.716 billion was shared to the relevant States as 13 percent derivation revenue.

“For the month of April 2023, the gross revenue available from the Value Added Tax (VAT) was N217.743 billion This was lower than the N218.786 billion available in the month of March 2023 by N1.043 billion; The Federal Government received N30.414 billion, the State Governments received N101.381 billion and the Local Government Councils received N70.967 billion from the N202.762 billion distributable Value Added Tax (VAT) revenue,” it stated.

Out of the N14.516 billion received from the Electronic Money Transfer Levy (EMTL), the Federal Government received N2.177 billion, the State Governments received N7.258 billion and the Local Government Councils received N5.081 billion.

From the total revenue of N50.000 billion received from Forex Equalization, the Federal Government received N22.916 billion, the State Governments received N11.623 billion, the Local Government Councils received N8.961 billion and the sum of N6.500 billion was shared to the relevant States as 13 percent mineral revenue.

“From the N24.000 billion Non-mineral revenue, the Federal Government received N12.643 billion, the State Governments received N6.413 billion and the Local Government Councils received N4.944 billion,” it stated.

According to the communiqué, in the month of April 2023, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Import and Excise Duties, and Value Added Tax (VAT) all decreased considerably. Only Electronic Money Transfer Levy (EMTL) increased albeit marginally.