The Federation Account Allocation Committee (FAAC) has declared the disbursement of a substantial sum of N1.1 trillion to the three tiers of government for the month of August 2023.
This figure marks a noteworthy increase of N192.46 billion compared to the N907.54 billion shared in July 2023.
The committee made this announcement through a communiqué issued at the conclusion of its September meeting held in Abuja.
FAAC anounces breakdown of N1.1 trillion
According to the communique, the N1.1 trillion disbursement consists of various components, including total distributable statutory revenue of N357.39 billion, distributable value-added tax (VAT) revenue amounting to N321.94 billion, electronic money transfer levy (EMTL) revenue of N14.10 billion, exchange difference revenue of N229.56 billion, and augmentation funds totaling N177.09 billion.
The total revenue available for August 2023 was reported at N1,483.902 billion. Deductions for the cost of collection amounted to N58.755 billion, while total transfers and refunds stood at N254.046 billion, with savings amounting to N71 billion.
Breaking down the disbursement, the federal government received N431.24 billion from the N1.1 trillion total distributable revenue, while the states were allocated N361.188 billion, and the local governments received N266.538 billion.
Regarding the revenue sources, the committee reported a gross statutory revenue of N891.934 billion for August, which was lower than the N1.15 trillion recorded in July 2023 by N258.49 billion.
From the distributable statutory revenue of N357.39 billion, the federal government received N173.10 billion, states got N87.8 billion, and local governments received N67.69 billion.
On the other hand, the gross revenue generated from VAT in August amounted to N345.72 billion, showing an increase of N46.93 billion compared to July’s N298.78 billion.
The distributable VAT revenue of N321.94 billion was distributed with the federal government receiving N48.291 billion, states receiving N160.97 billion, and local governments getting N112.67 billion.
The EMTL revenue of N14.10 billion was allocated with N2.11 billion going to the federal government, N7.05 billion to the states, and N4.93 billion to the local governments.
The exchange difference revenue of N229.56 billion saw the federal government receiving N114.44 billion, states getting N58.04 billion, and local governments receiving N44.75 billion.
A total of N12.32 billion was also disbursed to relevant states as 13 percent derivation.
Furthermore, notable changes in revenue sources for August 2023 include significant increases in VAT, import and excise duties, and EMTL, while petroleum profit tax (PPT), companies income tax (CIT), and oil and gas royalties recorded significant decreases.
The excess crude account (ECA) maintained a balance of $473,754.57 during the month of August 2023.