Finance & EconomyNews

FAAC shares N760.2 billion to FG, States, LGAs in September

The Nigerian Government disclosed that the Federation Account Allocation Committee (FAAC) allocated the sum of N760.235 billion to the Federal Government, states and local governments in September. 

This was disclosed in a statement by the Federation Account Allocation Committee (FAAC) on Thursday. 

 It was gathered that oil-producing states received N59.992 billion as 13% derivation. 

 The committee said N760.235 billion was released to the three tiers of government as federation allocation for September. 

The FAAC noted that the federal government received N294.244 billion, the states received N233.223 billion, and the LGCs received N172.776 billion. Oil-producing states received an extra N59.992 billion. Meanwhile, the gross revenue available from Value Added Tax (VAT) for September was N189.928 billion, as N60 billion in savings were from non-oil revenue and Electronic Money Transfer Levy (EMTL). 

 “The distribution is as follows; the Federal Government got N28.489 billion, the states received N94.964 billion, and Local Government Councils got N66.475 billion.”

They noted that the Gross Statutory Revenue of N502.135 billion distributed was higher than the sum received in the previous month, from which the Federal Government was allocated the sum of N232.921 billion. 

“States got N118.141 billion, LGCs got N91.081billion, and oil derivation (13 per cent mineral revenue) got N59.992 billion. Also, N8.172 billion of EMTL distributable revenue was shared to the three tiers of government as follows; the Federal Government received N1.226 billion, States got N4.086 billion, LGCs received N2.860 billion.” 

The sum was distributed accordingly as follows: Federal government received N31.608 billion, states got N16.032 billion and LGCs received N12.360 billion. 

They added that Oil and Gas Royalties also increased as Petroleum Profit Tax (PPT) and Excise Duty recorded a marginal increase. However, ”VAT, Import Duty and Companies Income Tax (CIT) decreased considerably”.

Meanwhile, the total revenue distributable for September was drawn from Statutory Revenue of N502.135 billion and VAT of N189.928 billion. 

They said, the total revenue distributable for September was also drawn from EMTL of N8.172 billion and Non-Oil Excess Revenue of N60 billion savings, which was converted to distributable revenue, which brought the total distributable for the month to N760.235 billion. 

 The thirty-six states of the federation, including the federal capital territory, recorded a cumulative internally generated revenue (IGR) of N1.89 trillion in 2021, an increase of 21.5% compared to N1.56 trillion recorded in the previous year. 

Lagos State, a major metropolitan city and the economic hub of the country generated a sum of N753.46 billion as internally generated revenue in 2021, accounting for 39.7% of the total inflows recorded by the 36 states and the FCT.  

The Federation Account Allocation Committee (FAAC) shared a total sum of N673.137 billion in August 2022 from the Federation Account Revenue to the federal government, states and local government councils. 

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