FAAC Allocation Revenue Drops to N655.932 Billion in April 2023

How FAAC Shared Revenue Among the Three Tiers of Government in April 2023

Patrick OdeyMay 19, 2023

2 minutes read

The Federation Account Allocation Committee (FAAC) has announced that it shared N655.932 billion as revenue for April 2023 among the three tiers of government. This is lower than the N714 billion shared in March 2023 and the N722 billion shared in February 2023.

The FAAC disclosed this in a statement by Bawa Mokwa, Director (Press and Public Relations) in the Office of the Accountant General of the Federation (OAGF), after its monthly meeting in Abuja. He said that the decline in revenue was due to a considerable decrease in Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Import and Excise Duties, and Value Added Tax (VAT) in April 2023. Only Electronic Money Transfer Levy (EMTL) increased marginally.

The statement explained that the N655.932 billion total distributable revenue consisted of distributable statutory revenue of N364.654 billion, distributable VAT revenue of N202.762 billion, EMTL of N14.516 billion, N50.000 billion augmentation from Forex Equalization revenue and N24.000 billion augmentation from the non-mineral revenue.

The FAAC also said that the total deductions for cost of collection was N28.108 billion and total deductions for transfers and refunds was N120.287 billion. The balance in the Excess Crude Account (ECA) remained at $473,754.57.

The breakdown of the allocation showed that the Federal Government received N248.809 billion, the State Governments received N218.307 billion and the Local Government Councils received N160.600 billion. A total sum of N28.216 billion was shared to the relevant States as 13 percent derivation revenue.

The statement further stated that gross statutory revenue of N497.463 billion was received for April 2023, which was lower than the sum of N638.673 billion received in March 2023 by N141.210 billion.

From the distributable statutory revenue of N364.654 billion, the Federal Government received N180.659 billion, the State Governments received N91.632 billion and the Local Government Councils received N70.647 billion. The sum of N21.716 billion was shared to the relevant States as 13 percent derivation revenue.

The statement added that the gross revenue available from VAT was N217.743 billion in April 2023, which was lower than the N218.786 billion available in March 2023 by N1.043 billion.

From the distributable VAT revenue of N202.762 billion, the Federal Government received N30.414 billion, the State Governments received N101.381 billion and the Local Government Councils received N70.967 billion.

The statement also said that the EMTL of N14.516 billion was shared as follows: the Federal Government received N2.177 billion, the State Governments received N7.258 billion and the Local Government Councils received N5.081 billion.

The statement noted that the total revenue of N50.000 billion from Forex Equalization was shared as: the Federal Government, N22.916 billion; the State Governments, N11.623 billion; Local Government Councils, N8.961 billion and the sum of N6.500 billion was shared to the relevant States as 13 percent mineral revenue.

From the non-mineral revenue of N24 billion, the Federal Government received N12.643 billion, the State Governments received N6.413 billion and the Local Government Councils received N4.944 billion.