Finance

FAAC shares N722.677bn For March

The Federation Account Allocation Committee (FAAC) has approved the disbursement of N722.677 billion to the three tiers of government, as federation allocation for the month of February, 2023.

The approved money is inclusive of income from gross statutory revenue, Value Added Tax (VAT), electronic money transfer levies and augmentation from forex equalization account.

According to a statement that was issued at the end of the monthly FACT meeting yesterday showed a total distributable revenue from February of N366.800 billion, VAT, N224.232 billion; while N11.645 billion was raised from electronic money transfer levies, and N120.000 billion augmentation from forex equalization account, bringing the total distributable amount for the month of February, 2023 to N722.677 billion.

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The balance in the Excess Crude Account (ECA) as at March 22nd, 2023 stands at $473,754.57.

The statement that was issued by the Federal Ministry of Finance, Budget and National Planning showed that N240.799 billion was raised from VAT, which was less than the amount generated in the previous month. 

From VAT, N9.632 billion was allocated for cost of collection to the Federal Inland Revenue Service (FIRS) and the sum of N6.935 given for transfers, savings, recoveries and refunds, the statement said.

The remaining sum of N224.232 billion was distributed to the three tiers of government of which the Federal Government got N33.635 billion, the States received N112.116 billion, Local Government Councils got N78.481 billion.

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From the VAT revenue, federal government received N269.063 billion, states: N236.464 billion, local government area: N173.936 billion, while oil producing states received N43.214 billion as derivation, (13 per cent of mineral revenue).

The gross statutory revenue from February is N487.106 billion which is also lower than what was generated in the previous month of January,2023. 

From that amount, the sum of N17.332 billion was given for cost of collection and a total sum of N102.974 billion for transfers, savings, recoveries and Refunds.

The remaining balance of N366.800 billion was distributed as follows: federal government was allocated the sum of N178.683 billion, states got N90.630 billion, LGAs got N69.872 billion, and oil derivation (13 percent mineral revenue) got N27.614 billion.

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According to the statement, the sum of N12.130 billion raised from electronic money transfer was distributed to the three tiers of government as follows: federal government: N1.747 billion, states: N5.822 billion, LGAs: N4.076 billion and the sum of N0.485 billion was allocated for cost of collection.

The sum of N120.000 billion from augmentation from forex equalization account was also shared thusly: federal government: N54.998 billion, 36 states and FCT: N27.896 billion, LGA: N21.506 billion and oil derivation (13 percent of mineral revenue) got N15.600 billion.

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