FAAC allocates N903.48 billion to FG, States, and LGs in September

The Federation Account Allocation Committee (FAAC) has distributed N903.480 billion as the Federation Account Revenue for September 2023 to the federal government, states, and Local Government Councils (LGCs).

According to the communique issued at the end of the October FAAC meeting in Abuja on Tuesday, the N903.480 billion total distributable revenue consisted of N423.012 billion in distributable statutory revenue, N282.666 billion in value-added tax (VAT), N10.989 billion in electronic money transfer levy (EMTL) revenue, and N186.813 billion in exchange difference revenue.

In total, there was revenue of N1,594.763 billion available in September 2023.

The communique also outlined that N54.426 billion was deducted for the cost of collection, N347.857 billion was transferred, and N289.000 billion was saved.

Notably, the gross statutory revenue for September was N1,014.953 billion, representing a significant increase of N123.019 billion compared to August when it was N891.934 billion.

However, the gross revenue from VAT was N303.550 billion, which was lower by N42.177 billion compared to the N345.727 billion in August.

From the N903.480 billion total distributable revenue, the federal government received N320.543 billion, the state governments received N287.071 billion, and the LGCs received N210.900 billion. A total of N84.966 billion (13 percent of mineral revenue) was shared with relevant states as derivation revenue.

Distributable statutory revenue of N423.012 billion was allocated to the federal government (N190.849 billion), state governments (N96.801 billion), and LGCs (N74.629 billion). An additional N60.733 billion (13 percent of mineral revenue) was shared with relevant states as derivation revenue.

VAT revenue of N282.666 billion was distributed with the federal government receiving N42.400 billion, state governments receiving N141.333 billion, and LGCs receiving N98.933 billion.

Lastly, the exchange difference revenue of N186.813 billion was divided between the federal government (N85.647 billion), state governments (N43.442 billion), and LGCs (N33.491 billion). N24.233 billion (13 percent of mineral revenue) went to relevant states as derivation revenue.

The Excess Crude Account (ECA) balance stood at $473,754.57.

In September, petroleum profit tax (PPT) and oil and gas royalties saw substantial increases, while VAT, import and excise duties, EMTL, companies’ income tax (CIT), and CET levies recorded significant decreases.

Credit: NAN