The Federation Account Allocation Committee (FAAC) has shared a total sum of N1.1 trillion August 2023 Federation Account Revenue to the federal government, states, and local government councils.
This is the highest amount the FAAC has shared in 2023. Since the removal of the subsidy, there has been a steady rise in the amount of revenue available to the beneficiaries of the account. In June 2023, N907 billion was shared, in July it was N966 billion and now N1.1 trillion was shared from August revenue.
Aside from the huge amount generated to be shared, the federal government for the third month running was able to save N71 billion with the Central Bank of Nigeria as earlier agreed among the three tiers of government.
A source at the FAAC meeting told The Nation that the reason there was over a trillion to share in September was because “there was an augmentation of about N200 billion from the non-oil sector, it would have been N908 billion.”
The balance in the Excess Crude Account (ECA) was $473,754.57.
A communique issued and signed by Bawa Mokwa, Director (Press and Public Relations) in the Office of the Accountant General of the Federation (OAGF), said the “N1.1 trillion total distributable revenue comprised distributable statutory revenue of N357.398 billion, distributable Value Added Tax (VAT) revenue of N 321.941 billion, Electronic Money Transfer Levy (EMTL) revenue of N14.102 billion, Exchange Rate Differential Revenue of N 229.568 billion and Augmentation of NN177.092 billion.”
Bawa Mokwa stated that total revenue of “N1.4 trillion was available in August 2023. Total deductions for the cost of collection was N58.755 billion, total transfers and refunds were N254.046 billion and savings was N71 billion.”
The communique added that “gross statutory revenue of N891.934 billion was received for the month of August 2023 which was lower than the N1.15 trillion received in the month of July 2023 by N258.490 billion and the gross revenue available from the Value Added Tax (VAT) was N345.727 billion. This was higher than the N298.789 billion available in the month of July 2023 by N46.938 billion”.
From the N1.1 trillion total distributable revenue, the Federal Government went away with a total of N431.245 billion, the State Governments received N361.188 billion and the Local Government Areas/Councils received N266.538 billion.
“A total sum of N26.473 billion (13 percent of mineral revenue) and N14.657 billion (13 percent of savings from NNPCL), were shared to the relevant States as derivation revenue”.
Bawa Mokwa said that “from the N357.398 billion distributable statutory revenue, the Federal Government received N173.102 billion, the State Governments received N87.800 billion and the Local Government Councils received N67.690 billion. The sum of N14.446 billion (13 percent of mineral revenue) and N14.361 billion (13 percent of savings from NNPCL) were shared with the relevant States as derivation revenue.
“The Federal Government received N48.291 billion, the State Governments received N160.971 billion and the Local Government Councils received N112.679 billion from the N321.941 billion distributable Value Added Tax (VAT) revenue.”
He also said that from the N14.102 billion Electronic Money Transfer Levy (EMTL) revenue, “the Federal Government received N2.115 billion, the State Governments received N7.051 billion and the Local Government Councils received N4.936 billion.
With regards to Exchange Rate Differential Revenue, Mokwa said: “The Federal Government received N114.445 billion from the N229.568 billion. The State Governments received N58.048 billion, and the Local Government Councils received N44.752 billion. The sum of N12.027 billion (13 percent of mineral revenue) and N0.296 billion (13 percent of savings from NNPCL) went to the relevant States as derivation revenue.
Corroborating what the source at FAAC told The Nation, Mokwa in his communique said N177.092 billion was used to augment the generated revenue.
From the augmentation proceeds, he noted: “The Federal Government received N93.292 billion, the State Governments received N47.319 billion and the Local Government Councils received N36.481 billion.
“In the month of August 2023, Value Added Tax (VAT), Import and Excise Duties, and Electronic Money Transfer Levy (EMTL) increased considerably while Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties recorded significant decreases.”
