FAAC allocation increases by N104bn as revenue rises in June

The federation accounts allocation committee (FAAC) shared N651.18 billion to the three tiers of government for the month of June.

This is an increase of N104 billion when compared to N547.309 billion disbursed for the month of May.

Henshaw Ogubike, director of information, press and public relations of FAAC, announced the figures in a statement in Abuja, on Sunday.

He said the disbursement was made during a virtual conference chaired by Ahmed Idris, the accountant general of the federation.

Giving the breakdown, Ogubike said the federal government received N266.13 billion, the state governments got N185.77 billion and the local government councils received N138.97 billion.

He explained that the gross statutory revenue available in June was N524.52 billion while the gross revenue from the value-added tax (VAT) was N128.826 billion and the revenue from the exchange gain was N42.832 billion.

This brought the total revenue for the month to N696.18 billion.

The director said that from this total, the sum of N45 billion was saved in the excess non-oil revenue account and the balance of N651.184 billion was shared to the three tiers of government and relevant agencies.

According to him, the oil-producing states received N28.49 billion as 13 percent derivation revenue while N76.80 billion was given to revenue-generating agencies.

Ogbubike said during the month, import and excise duty, VAT, companies income tax, oil and gas royalty recorded significant increases while petroleum profit tax declined.

In January, FAAC allocation was at N716 billion, while the three tiers of government shared N581.566 billion in February.

The allocation rose to N780.926 billion in March but dropped to N606.196 billion in April.

The federal allocation in May is the lowest since the beginning of this year — a clear effect of the COVID-19 pandemic on the economy.