The Federation Account Allocation Committee (FAAC), at its Meeting chaired by the Honourable Minister of Finance and the Co-ordinating Minister of the Economy, Mr. Wale Edun this Tuesday the 22nd of August 2023 shared a total sum of N966.110 billion to the three tiers of government; the amount is derived from the Federation Allocation for the month of July, 2023.
A statement by Stephen Kilebi, Director Press and Public Relations at the ministry indicates that total revenue collected in the month under review was one trillion, seven hundred and forty six billion, four hundred and ninety one million Naira (N1,746,491,000,000).
The amount is inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Exchange Difference.
Of the N996.11 billion shared, the Federal Government received N374.485 billion, the 36 States of the federation received N310.670 billion, the 774 Local Government Councils got N229.409 billion, while the Oil Producing States received N51.545 billion as Derivation, (13% of Mineral Revenue).
Gross Statutory Revenue of one trillion, one hundred and fifty billion, four hundred and twenty four million Naira (N1,150,424,000,000) received for the month of July, 2023 was lower than the sum of one trillion, one hundred and fifty two billion, nine hundred and twenty one million Naira (N1,152,921,000,000) received in the previous month of June, 2023 by N2.497 billion. From that amount, the sum of N50.203 billion was allocated for costs of collection and N702.801 billion for savings, transfers and refunds.
The remaining balance of N397.419 billion was distributed as follows: Federal Government was allocated the sum of N190.489 billion, States got N96.619 billion, LGCs got N74.489 billion, and Oil Derivation (13% Mineral Revenue) got N35.822 billion.
The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for July 2023, was N298.789 billion; this is N5.378 billion more than the N293.411billion distributed in the preceding month of June.
From that amount, the sum of N11.681 billion was allocated for Costs of Collection and the sum of N15.161 billion given for Savings,Transfers and Refunds. The remaining sum of N271.947 billion was distributed to the three tiers of government of which the Federal Government got N40.792 billion, the States received N135.974 billion and the Local Government Councils got N95.181 billion.
Also, the sum of N13.375 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N1.926 billion, States got N6.420 billion, Local Government Councils received N4.494 billion, and N0.535 billion was allocated for costs of collection.
The Communique disclosed that the sum of N283.904 billion from Exchange Difference was shared as follows: Federal Government received N141.278 billion, the States got N71.658 billion, the sum of N55.245 billion allocated to Local Government Councils, N15.723 billion given for derivation (13% of Mineral Revenue).
According to the Communique, the total revenue distributable for the current month of July, was drawn from Statutory Revenue of N397.419 billion, Value Added Tax (VAT) of N271.947 billion, Electronic Money Transfer Levy, N12.840 billion, and N283.904 billion from Exchange Difference, bringing the total distributable amount for the month of July, 2023 to N966.110 billion.
Companies Income Tax (CIT), Petroleum Profit Tax (PPT) and Oil and Gas Royalties recorded significant decreases. Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased considerably, while Value Added Tax (VAT) increased marginally.
The balance in the Excess Crude Account (ECA) as at August 22, 2023 stands at $473,754.57, same amount it started the year with.
Minister of Finance and the Co-ordinating Minister of the Economy Mr.Wale Edun,who chaired the meeting noted that there was the need for government to mobilise resources to deliver on its mandate to increase employment and reduce poverty.
Mr.Edun advised that there should be discipline in money supply to control inflation in the nation’s economy. Nigeria recorded a 24.08% inflation rate in the month of July, 2023.
It will be recalled that the three tiers of government shared N907.054 billion July 20, 2023 from the revenue collected in the month of June
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