FAAC: FG, States, LGAs Share ₦802bn As Allocation Rises By 18%

A report issued by the Federation Account Allocation Committee (FAAC) showed there was a rise in allocation shared by federal, state and local governments in the month of June 2022.

Naija News understands that the three tiers of government shared the sum of ₦802.407bn in the previous month, recording a ‘big’ leap from the ₦681bn shared in May.

A statement made available to newsmen by the Director of Press/Information, Federal Ministry of Finance, Mrs Phil Abiamuwe-Mowete, highlighted how the fund was shared at various levels.

“From this stated amount, inclusive of Gross Statutory Revenue and Value Added Tax (VAT), the Federal Government received ₦321.859 billion, the States received ₦245.418 billion, the Local Government Councils got ₦182.330 billion, while the Oil producing states received ₦52.799 billion as derivation, (13% of Mineral Revenue),” the statement noted.

FAAC had indicated shortly after its meeting on Tuesday night that the gross revenue available from the Value Added Tax (VAT) for June 2022 was ₦193.827 billion.

It also stated that the Federal Government got ₦29.074 billion, states received ₦96.914 billion and local government councils were given ₦67.839 billion.

Also, the gross statutory revenue of ₦608.580 billion was distributed, from which the Federal Government was allocated the sum of ₦292.785 billion. States got ₦148.505 billion, while local governments got ₦114.491 billion. States entitled to oil derivation got ₦52.799 billion.

The communiqué further revealed that companies’ income tax and petroleum profit tax reported significant increases, while import duty, and oil and gas royalties increased marginally, Naija News understands.

It states, however, that excise duties decreased significantly, while VAT decreased marginally.

It was further revealed that total revenue distributable for the month of June was drawn from statutory revenue of ₦608.580 billion and VAT of ₦193. 827 billion, bringing the total distributable for the month to ₦802.407 billion.