FAAC: FG, States, LGAs Share N786 bn in May
The Federation Account Allocation Committee (FAAC) has announced the distribution of N786.16 billion among the three tiers of government in May 2023.
This amount marks a significant increase of N130.23 billion compared to the previous month, April 2023.
The recent FAAC meeting, held in Abuja and chaired by the newly appointed Accountant General of the Federation, Dr. Oluwatoyin Madein, provided details of the revenue allocation.
Distribution of Revenue
The N786.16 billion FAAC allocation came from various sources, including gross statutory revenue, Value Added Tax (VAT), augmentations from Forex and Non-oil Mineral Revenue, and electronic money transfer levies.
The distributable revenue consists of N519.55 billion in statutory revenue, N251.61 billion in VAT revenue, N14.37 billion in Electronic Money Transfer Levy, and N0.64 billion in Exchange Difference revenue.
Allocation Among Government Tiers
Out of the total revenue, the Federal Government received N301.89 billion, the state governments received N265.88 billion, the local government councils obtained N195.54 billion, and the oil-producing states were allocated N22.86 billion as derivation, which accounts for 13% of the mineral revenue.
Breakdown of Statutory Revenue
The gross statutory revenue for May 2023 amounted to N701.79 billion, surpassing the previous month’s total by N204.32 billion.
From the distributable statutory revenue, the Federal Government received N261.69 billion, the state governments received N132.73 billion, the local government councils obtained N102.33 billion, and N22.8 billion was allocated to the relevant states as 13% derivation revenue.
Value Added Tax (VAT) Revenue
May 2023 witnessed a growth in VAT revenue, with N270.2 billion available compared to N217.74 billion in April 2023.
The Federal Government received N37.74 billion, the state governments obtained N125.80 billion, and the local government councils received N88.06 billion from the distributable VAT revenue.
Electronic Money Transfer Levy
A sum of N14.37 billion was shared as Electronic Money Transfer Levy. The Federal Government received N2.16 billion, the state governments obtained N7.189 billion, and the local government councils were allocated N5.03 billion from this source.
Exchange Difference Revenue
The allocation of N0.64 billion in Exchange Difference revenue was divided among the government tiers as follows: the Federal Government received N0.31 billion, the state governments obtained N0.16 billion, the local government councils received N0.12 billion, and N0.06 billion was shared among the relevant states as 13% mineral revenue.
The distribution of N786.16 billion in May 2023 marks the highest revenue allocation this year and a significant increase compared to the previous month.
The breakdown reveals that gross statutory revenue, VAT revenue, Electronic Money Transfer Levy, and Exchange Difference revenue all contributed to this surge.
We do hope that the information we were able to provide you are helpful. Checkout out other unique articles on our blog for more detailed information and do well to share with your friends and family. Follow us on our Twitter and Facebook to stay updated with premium information.
Please leave any comments or questions in the area given below.
DISCLAIMER: The views and opinions expressed in Fact Check are those of the authors and do not necessarily reflect the official policy or position of Fact Check. Any content provided by our bloggers or authors is of their opinion and is not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone or anything.
Information is presented to the best of our knowledge and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability concerning the website or the information, products, services, or related graphics contained on the website for any purpose. Therefore, any reliance you place on such information is strictly at your own risk.