N2.5 Trillion Shared: FAAC Disburses June Allocation to FG, States and LGs

The Federation Account Allocation Committee (FAAC) says a total of N2.55 trillion was shared among the federal government, states, and local government councils (LGCs) in June.

The revenue was distributed during FAAC’s July meeting held in Abuja on Wednesday, according to a statement by Bawa Mokwa, director of press and public relations at the office of the accountant-general of the federation.

The N2.55 trillion distributable revenue comprised N1.8 trillion in statutory revenue and N740.72 billion in value-added tax (VAT) revenue.

The statement said the federation account recorded a gross revenue of N4.5 trillion in June, out of which N160.74 billion was deducted as cost of collection, while N1.78 trillion was allocated to transfers and refunds.

Out of the total distributable revenue, the federal government received N923.43 billion, the states got N838.2 billion, while the local governments received N591.39 billion.

Oil-producing states reportedly received N197.61 billion as 13 percent derivation revenue.

FAAC said gross statutory revenue rose to N3.7 trillion in June from N2.65 trillion recorded in May, representing an increase of N1.04 trillion.

The committee said gross VAT revenue also increased to N799.74 billion in June, from N743.68 billion in May — marking an increase of N56.07 billion or 7.5 percent.

The allocation committee said the federal government received N849.36 billion from the N1.8 trillion distributable statutory revenue, while the states got N430.81 billion, and the local governments received N332.13 billion.

FAAC said the oil-producing states also received N197.61 billion as derivation revenue.

Out of the N740.72 billion distributable VAT revenue, N74.07 billion went to the federal government, states received N407.39 billion, while local governments got N259.25 billion.

In addition, FAAC said collections from company income tax (CIT), capital gains tax (CGT), stamp duties, petroleum royalties, gas flaring penalties, rents, miscellaneous oil revenue (MOR), VAT, import duty and common external tariff (CET) levies increased significantly during the month.

However, the committee said receipts from petroleum profit tax (PPT), hydrocarbon tax (HT), mineral royalties and fees declined, while excise duty recorded only a marginal increase.