The Federation Account Allocation Committee (FAAC) has shared a total sum of N786.161 billion May 2023 Federation Account Revenue to the Federal Government, States, and Local Government Councils.
Gross statutory revenue realized for May 2023 increased to about N701.787 billion, just as the 36 States, 774 Local Government Councils, and the Federal Capital Territory shared a total of N786.161 billion as statutory allocation for May.
A communiqué issued at the end of the Federation Account Allocation Committee (FAAC) meeting for June 2023 said the gross revenue was about N204.324 billion higher than about N497.463 billion realized in April.
FAAC is a special committee made up of Commissioners of Finance or their representatives from the 36 States of the Federation and the Federal Capital Territory (FCT) whose meeting holds once every month for the purpose of sharing revenue allocation for the three tiers of government in line with the revenue allocation formula approved by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
The Committee has the Minister of Finance as its Chairman, with its secretariat domiciled in the Office of the Accountant General of the Federation (OAGF).
Thursday’s meeting was presided over by the Accountant General of the Federation, Oluwatoyin Madein, in the absence of a Minister.
Other details contained in the communiqué showed that total distributable revenue stood at about N786.161 billion, comprising about N519.545 billion as revenue from oil exports; N251.607 billion as Value Added Tax (VAT) revenue; N14.370 billion as revenue from Electronic Money Transfer Levy (EMTL), and N0.639 billion as earnings from exchange differential gain between official and parallel market exchange rates.
Although the communique did not disclose the volume of crude oil either produced or exported during the month, the document said revenues realized from Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Value Added Tax (VAT), Import and Excise Duties all increased significantly, while Electronic Money Transfer Levy (EMTL) decreased marginally.
From the total revenue realized during the month, the total deductions paid to the revenue generation agencies for the cost of collection stood at about N38.238 billion.
The revenue generation agencies consist Federal Inland Revenue Service (FIRS), the Nigeria Customs Service (NCS), and the Inspectorate Department of the Nigerian Upstream Petroleum Industry Regulatory Commission (NUPRC).
Another sum of N163.193 billion was deducted for statutory transfers to statutory agencies including the Independent National Electoral Commission (INEC), National Population Commission (NPC), and others as well as refunds to different agencies of the government.
From the total distributable revenue of N786.161 billion, the Federal Government received N301.889 billion, or 52.68 percent; the State Governments N265.875 billion, or 26.72 percent, and the Local Government Councils N195.541 billion, or 20.6 percent. A total of N22.855 billion was shared to the relevant oil producing states as 13 percent derivation revenue.
Details of the revenue distribution showed that out of the total N519.545 billion realized as statutory revenue, the Federal Government received N261.686 billion, the State Governments N132.731 billion, and the Local Government Councils N102.330 billion, while about N22.798 billion was shared with the relevant oil producing States as 13 percent derivation revenue.
For the VAT revenue of about N270.197 billion, which was higher than the N217.743 billion realized in the month of April 2023 by N52.454 billion, with the Federal Government receiving N37.741 billion, the State Governments N125.804 billion and the Local Government Councils N88.062 billion from the sum of N251.607 billion approved as distributable VAT revenue.
Out of the N14.370 billion Electronic Money Transfer Levy (EMTL) revenue, the Federal Government received N2.155 billion, the State Governments N7.185 billion, and the Local Government Councils N5.030 billion.
From the N0.639 billion Exchange Difference revenue, the Federal Government received N0.307 billion, the State Governments N0.156 billion, the Local Government Councils N0.119 billion, and the sum of N0.057 billion was shared to the relevant States as 13 percent mineral revenue.
The balance in the Excess Crude Account (ECA) stood at about $473,754.57
