The Federation Account Allocation Committee (FAAC), Wednesday shared a total sum of N2.225 trillion to the three tiers of government as the Federation Account grossed N3.635 trillion in August.

 

Citing a communique issued at the monthly FAAC meeting for September, the Director, Information and Public Relations, Federal Ministry of Finance, Mohammed Manga, in a statement said the disbursed N2.225 trillion comprised Statutory Revenue of N1.478 trillion, VAT (N672.903 billion), N32.338 billion from Electronic Money Transfer Levy (EMTL), and the sum of N41.284 billion from Exchange Difference.

 

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Out of the distributable revenue, the federal government received N810.047 billion, the 36 states and local governments received N709.831 billion and N522.228 billion respectively, while the oil producing states got N183.012 billion as derivation (13 per cent mineral revenue).

Cost of collection accounted for N124.839 billion while N1.285 trillion was allocated for Transfers Intervention and Refunds.

 

Giving further breakdown, the statement disclosed that the Gross Revenue available from VAT for the month of August was N722.619 billion as against N687.940 billion distributed in the preceding month, resulting in an increase of N34.679 billion.

“From that amount, the sum of N28.905 Billion was allocated for the cost of collection and the sum of N20.811 Billion given for Transfers, Intervention and Refunds.

“The remaining sum of N672.903 Billion was distributed to the three of tiers of government, of which the federal government got N100.935 billion, the states received N336.452 billion and local government councils got N235.516 billion.

“Accordingly, the Gross Statutory Revenue of N2.838 Trillion received for the month was lower than the sum of N3.070 Trillion received in the previous month by N231.913 billion .

“From the stated amount, the sum of N94.587 Billion was allocated for the cost of collection and a total sum of N1.265 trillion for Transfers, Intervention and refunds,” the statement said.

 

It added that the balance of N1.478 trillion was distributed among the three tiers of government.

The federal government received the sum of N684.462 billion, states got N347.168 billion, while the sum of N267.652 billion was allocated to local councils and N179.311 billion as 13 per cent Derivation Revenue mineral producing states.

Also, the sum of N33.685 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three tiers of government as follows: the federal government received N4.851 billion, states got N16.169 billion, local government councils received N11. 318 billion, while N1.347 billion was allocated for cost of collection.

Oil and Gas Royalty, VAT and CET levies increased significantly, while Petroleum Profit Tax (PPT), Import Duty, Electronic Money Transfer Levy (EMTL), Companies Income Tax (CIT) and Excise Duty declined.

 

Earlier, in his opening remarks, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who chaired the meeting commended the FAAC for their diligent efforts in ensuring the effective allocation of resources to the various tiers of government.

He noted that the economic reforms embarked upon by the Federal Government are yielding positive results and that our collective efforts will continue to drive growth and development.

The minister assured that better days are ahead and expressed optimism about the future of our economy. As we continue to work together, I urge us to prioritize prudent management of public resources, ensuring that our nation’s wealth is utilized effectively to meet the needs of our citizens, Edun emphasized.