The Federation Account Allocation Committee (FAAC), at its Meeting shared a total sum of N907.054 billion to the three tiers of government as Federation Allocation for the month of June, 2023 out of a gross revenue of N1,152.920 trillion.
The Federation Account Allocation Committee agreed to save the balance of N1 trillion with the Central Bank of Nigeria which will be shared later.The essence is to avoid further inflationary pressures in the nation’s economy.
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 N345.564 billion, the States received N295.948 billion, the Local Government Councils got N218.064 billion, while the Oil Producing States received N47.478 billion as Derivation, (13% of Mineral Revenue).
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 June 2023, was N293.411 billion, which was an increase from the N270.197 billion distributed in the preceding month, resulting in an increase of N23.214 billion.
From that amount, the sum of N11.736 billion was allocated for Costs of Collection and the sum of N8.450 billion given for Savings,Transfers and Refunds. The remaining sum of N273.225 billion was distributed to the three tiers of government of which the Federal Government got N40.984 billion, the States received N136.613 billion, Local Government Councils got N95.629 billion.
Accordingly, the Gross Statutory Revenue of N1152.920 billion received for the month was higher than the sum of N701.787 billion received in the previous month of May, 2023 by N451.134 billion. From that amount, the sum of N61.022 billion was allocated for costs of collection and a total sum of N790.397 billion for savings, transfers and refunds.
The remaining balance of N301.501 billion was distributed as follows: Federal Government was allocated the sum of N146.710 billion, States got N74.413 billion, LGCs got N57.370 billion, and Oil Derivation (13% Mineral Revenue) got N23.008 billion.
Also, the sum of N11.913 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N1.715 billion, States got N5.718 billion, Local Government Councils received N4.003 billion, and N0.477 billion was allocated for costs of collection.
The Communique disclosed that the sum of N501.123 billion from Exchange Difference, was shared as follows: Federal Government received N156.155 billion, the States got N79.204 billion, the sum of N61.063 billion allocated to Local Government Councils, N24.470 billion given for derivation (13% of Mineral Revenue) and N180.231 billion to savings, transfers and refunds.
Companies Income Tax (CIT) recorded tremendous increase. Oil and Gas Royalties, Import and Excise Duties and Value Added Tax (VAT) increased significantly, while Petroleum Profit Tax (PPT) and Electronic Money Transfer Levy (EMTL) decreased considerably.
According to the Communique, the total revenue distributable for the current month of June, was drawn from Statutory Revenue of N301.501 billion, Value Added Tax (VAT) of N273.225 billion, Electronic Money Transfer Levy, N11.436 billion, and N320.892 billion from Exchange Difference, bringing the total distributable amount for the month of June, 2023 to N907.054 billion.
The balance in the Excess Crude Account (ECA) as at July 20, 2023 stands at $473,754.57