FAAC shares N2.338trn to FG, states, LGs

By Emma Ujah, Abuja Bureau Chief

The Federation Account Allocation Committee (FAAC) has shared N2.338 trillion among the Federal Government, state governments and the 774 local government councils.

The allocation was approved at the FAAC meeting held in Abuja on Thursday, according to a communiqué issued by the Office of the Accountant-General of the Federation.

The amount represents a decline of about N699 billion from the over N3 trillion shared among the three tiers of government in the previous month.

The distributable revenue comprised N1.565 trillion from statutory revenue and N773.233 billion from Value Added Tax (VAT) generated in August.

FAAC disclosed that total gross revenue available for the month stood at N3.685 trillion.

Of the gross revenue, N125.142 billion was deducted as the cost of collection, while N1.221 trillion was set aside for transfers, refunds and savings before the balance was distributed.

Under the revenue-sharing arrangement, the Federal Government received N804.897 billion, while the 36 states received N794.313 billion.

The 774 local government councils received N555.142 billion, while oil-producing states received N184.388 billion as the 13 per cent derivation from mineral revenue.

A breakdown of the statutory revenue showed that the Federal Government received N727.573 billion, states got N369.035 billion, while local governments received N284.511 billion.

The sum of N184.388 billion was also allocated to benefiting states as derivation revenue.

From the N773.233 billion VAT revenue, the Federal Government received N77.323 billion, state governments got N425.278 billion, while local governments received N270.632 billion.

The committee also reported a decline in statutory revenue during the period.

Gross statutory revenue fell to N2.850 trillion in August from N4.359 trillion recorded in July, representing a decline of N1.508 trillion.

In contrast, gross VAT revenue increased to N834.843 billion in August from N793.968 billion in July, representing an increase of N40.875 billion.

According to the communiqué, revenue inflows from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), VAT, Customs and Excise Duties (CET) levies and Excise Duty recorded significant increases in August.

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