Finance & EconomyNews

FAAC Disburses N673.137bn for August, as ECA Stagnates at $470,600

The FAAC Allocation for August came in at N673.137bn, down from the N954.08bn disbursed in July; this corresponds to a -41.7% decline. Analysts attribute the decline in August’s FAAC distribution to a drop in Companies Income Tax (CIT), Petroleum Profit Tax (PPT), Oil and Gas Royalties, counterbalancing gains in VAT, Import and Excise Duties. Meanwhile, the FAAC Allocation for August is the fourth lowest since January.

The Federation Account Allocation Committee (FAAC) has shared a total of N954.085 billion in Federation Account Revenue with the Federal Government, States, and Local Government Councils. The disbursement for August is the fourth lowest this year. This year the FAAC has disbursed a total of N6.56tr. However, the balance in the Excess Crude Account (ECA), as of September 23, stands at US$470,599.54, the same balance it maintained in July, after rising +25% from US$376,655 in June (see chart 1 below).

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