The Federation Account Allocation Committee (FAAC) has announced the distribution of a total sum of N966.11 billion among the various tiers of government for the month of July 2023
This update was provided in a communiqué following the committee’s recent meeting held in Abuja on Tuesday. Stephen Kilebi, the Director of Press and Public Relations at the Ministry of Finance, conveyed this information.
Chairing the meeting was Wale Edun, who serves as both the Minister of Finance and the Coordinating Minister of the Economy. Notably, the disbursed amount for July marked an increase from the previous month’s allocation of N907.05 billion by N59.06 billion, reflecting a 6.5 percent rise.
This distribution encompassed funds derived from gross statutory revenue, value-added tax (VAT), electronic money transfer levies (EMTL), and exchange rate difference revenue, as outlined by the committee.
The detailed breakdown included distributable statutory revenue amounting to N397.42 billion, distributable Value Added Tax revenue of N271.95 billion, Electronic Money Transfer Levy revenue totaling N12.84 billion, and Exchange Difference revenue of N283.904 billion.
From the total distributable revenue, the federal government received N374.49 billion, while the state governments and local governments received N310.67 billion and N229.41 billion, respectively. Additionally, a sum of N51.55 billion was allocated to relevant states as 13 percent derivation revenue.
The committee reported that the gross statutory revenue for July 2023 was N1.150 trillion, marginally lower than the N1.152 trillion received in the preceding month of June. Within the distributable statutory revenue of N397.42 billion, the federal government received N190.49 billion, state governments obtained N96.62 billion, local governments were granted N74.49 billion, and N35.82 billion was allocated to relevant states as 13 percent derivation revenue.
Furthermore, VAT revenue totaled N298.79 billion, surpassing the N293.41 billion recorded in June 2023 by N5.38 billion. Out of this VAT revenue, the federal government received N40.79 billion, state governments received N135.97 billion, and local governments acquired N95.18 billion.
Moreover, the electronic money transfer levies (EMTL) contributed N12.84 billion to the distribution. Of this sum, the federal government received N1.93 billion, state governments obtained N6.42 billion, and local governments received N4.49 billion.
The committee also revealed that the exchange difference revenue amounted to N283.9 billion. Within this, the federal government received N141.28 billion, state governments were allotted N71.66 billion, and local governments received N55.25 billion. An additional N15.72 billion was shared with the relevant states as 13 percent mineral revenue.
The communiqué also highlighted changes in revenue streams, including notable increases in import and excise duties, as well as EMTL. Conversely, petroleum profit tax, companies’ income tax (CIT), and oil and gas royalties experienced significant decreases.
FAAC emphasized deductions of N62.42 billion for the cost of collection and N717.96 billion for savings, transfers, refunds, and tax credit cancellations.
As of August 22, 2023, the excess crude account maintained a balance of $473,754.57.
In closing, Minister Wale Edun stressed the importance of monetary supply discipline to control inflation within the nation’s economy. He also emphasized the necessity for the government to mobilize resources to fulfill its objectives of boosting employment and alleviating poverty.