The Federation Account Allocation Committee (FAAC), at its meeting chaired by the Minister of Finance and the Co-ordinating Minister of the Economy, Mr Wale Edun, in Abuja on Tuesday, shared a total sum of N966.110 billion to the three tiers of government as Federation Allocation for July 2023 out of total gross revenue of N1, 746.491 trillion.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Exchange Difference, the Federal Government received N374.485 billion; the States received N310.670 billion, the Local Government Councils got N229.409 billion, while the Oil Producing States received N51.545 billion as Derivation, (13% of Mineral Revenue).
The Communique issued by the 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, which was an increase from the N293.411billion distributed in the preceding month, increasing to N5.378 billion.
From that amount, the sum of N11.681 billion was allocated for Costs of Collection and the sum of N15.161 billion was 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 Local Government Councils got N95.181 billion.
Accordingly, the Gross Statutory Revenue of N1150.424 billion received for the month was lower than N1152.921 billion 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 a total sum of 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, LGs got N74.489 billion, and Oil Derivation (13% Mineral Revenue) got N35.822 billion.
Also, the sum of N13.375 billion from the Electronic Money Transfer Levy (EMTL) was distributed to the three 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).
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.
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 July 2023 to N966.110 billion.
The balance in the Excess Crude Account (ECA) as of August 22, 2023, stands at $473,754.57.
Mr. Stephen Kilebi (Press and Public Relations) of the Federal Ministry of Finance said that Mr.Edun, the Minister of Finance and the Co-ordinating Minister for the Economy who chaired the meeting, noted that there was the need for government to mobilise resources to deliver on its mandate to create employment and reduce poverty.
He advised that there should be discipline in the money supply to control inflation in the nation’s economy.
Members of the FAAC expressed joy over the presence of the Minister of Finance and the Co-ordinating Minister for the Economy for attending and chairing the meeting, adding that he would bring his wealth of experience to turn things around in the nation’s economy.