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Federation Account: FG, States, LGCs Share N903.480bn for September 2023


………from Gross Total of N1594.763 trn

The Federation Account Allocation Committee (FAAC), at its Meeting chaired by the Honourable Minister of Finance and Co-Ordinating Minister of the Economy, Wale Edun shared a total sum of N903.480 billion to the three tiers of government as Federation Allocation for the month of September, 2023.

From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Exchange Difference, the Federal Government received N320.543 billion, the States received N287.071 billion, the Local Government Councils got N210.900 billion, while the Oil Producing States received N84.966 billion as Derivation, (13% of Mineral Revenue).

The comminique also disclosed that the sum of N54.426 billion was given to cost of collection, N347,857 billion allocated to Transfers and Refunds, while the sum of N289.000 billion was transfered to Non Oil Revenue (Savings) for the month of September 2023.

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 September 2023, was N303.550 billion, which was a decrease from the N345.727 billion distributed in the preceding month, resulting in a decrease of N42.177 billion.
From that amount, the sum of N12.142 billion was allocated for Costs of Collection and the sum of N8.742 billion given for Transfers and Refunds. The remaining sum of N282.666 billion was distributed to the three tiers of government of which the Federal Government got N42.400 billion, the States received N141.333 billion, Local Government Councils got N98.933 billion.

Accordingly, the Gross Statutory Revenue of N1014.953 billion received for the month was higher than the sum of N891.934 billion received in the previous month of August, 2023 by N123.019 billion. From that amount, the sum of N41.826 billion was allocated to Costs of Collection, a total sum of N339.115 billion for Transfers and Refunds and the sum of N211.000 was transferred to Non Oil Revenue (Savings). The remaining balance of  N423.012 billion was distributed as follows to the three tiers of government: Federal Government was allocated the sum of N190.849 billion, States got N96.801 billion, LGCs got N74.629 billion, and Oil Derivation (13% Mineral Revenue) got N60.733 billion.

Also, the sum of N11.447 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N1.648 billion, States got N5.495 billion, Local Government Councils received N3.846 billion and N0.458 billion was allocated to Costs of Collection.

The Communique disclosed N264.813 billion from Exchange Difference, which was shared as follows: Federal Government received N85.647 billion, the States got N43.442 billion, the sum of N33.491 billion allocated to Local Government Councils, and N24.233 billion given to Derivation (13% of Mineral Revenue) while the sum of N78.000 billion was transfered to Non Oil Revenue (Savings).

Petroleum Profit Tax (PPT) and Oil and Gas Royalties increased considerably, while Value Added Tax (VAT), Import and Excise Duties, Electronic Money Transfer Levy (EMTL), Companies Income Tax (CIT) and Custom External Tarrif (CET) levies recorded significant decreases.

According to the Communique, the total revenue distributable for the current month of September 2023, was drawn from Statutory Revenue of N423.012 billion, Value Added Tax (VAT) of N282.666 billion, N10.989 billion from Electronic Money Transfer Levy (EMTL) and N186.813 billion from Exchange Difference, bringing the total distributable amount for the month to N903.480 billion.

The balance in the Excess Crude Account (ECA) as at October 24, 2023 stands at $473,754.57.

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