FAAC: FG, states, LGAs shared N722bn as allocation in February — down by N27bn

The Federation Account Allocation Committee (FAAC) says it shared N722.677 billion among the three tiers of government in February 2023.

The disbursement shows a decrease of N27.497 billion compared to January’s allocation of N750.174 billion.

FAAC disclosed this in a communique issued at the end of its meeting for March 2023 in Abuja on Wednesday.

The committee said the N722.677 billion total distributable revenue comprised distributable statutory revenue of N366.800 billion, distributable value-added tax (VAT) revenue of N224.232 billion, electronic money transfer levy (EMTL) of N11.645 billion, and N120 billion augmentation from forex equalisation account.

According to the comminiqué, in February 2023, the total deductions for cost of collection was N27.449 billion, while total deductions for transfers, savings, recoveries and refunds was N109.909 billion.

From the total distributable revenue of N722.677 billion, FAAC said the federal government received N269.063 billion, states got N236.464 billion and the sum of N173.936 billion went to the local governments.

A total sum of N43.214 billion was also shared with the relevant states as 13 percent derivation revenue.

FAAC explained that a statutory revenue of N487.106 billion was received for the month of February 2023.

This, it said, was lower than the N653.704 billion received in the previous month by N166.598 billion.

From the balance of N366.800 billion distributable statutory revenue, the committee noted that the federal government received N178.683 billion, states collected N90.630 billion, and local governments got N69.872 billion.

It added that the sum of N27.614 billion was shared as 13 percent derivation revenue among the concerned states.

According to FAAC, the gross revenue available from the value-added tax (VAT) for February, was N240.799 billion, which is lower than the previous month’s.

The committee, however, said from the N224.232 billion distributable value-added tax (VAT), federal government was given N33.635 billion, states received N112.116 billion and local governments were paid N78.481 billion.

FAAC added that N11.645 billion from the EMTL was distributed to the federal government (N1.747 billion), states (N5.822 billion), and local governments (N4.076 billion).

For the augmentation of N120.000 billion, federal government got N54.998 billion, states were paid N27.896 billion.

While local governments received N21.506 billion, a total of N15.600 billion was shared to the relevant states as 13 percent mineral revenue.

The committee further said petroleum profit tax (PPT), company income tax (CIT), oil and gas royalties, and import and excise duties decreased significantly.

Similarly, value-added tax (VAT) and electronic money transfer Levy (EMTL) also decreased marginally, it added.

FAAC said the balance in the excess crude account (ECA) as at March 22, 2023, stands at $473,754.57.