FAAC allocated ₦1.354 Trillion to the three tiers of Nigeria’s government last month

In a significant financial allocation for June, Nigeria’s Federal Government, state and local governments, received a total of ₦1.354 trillion from the Federation Accounts Allocation Committee (FAAC).

The allocation, announced during FAAC’s July meeting in Abuja, marks a critical distribution of funds crucial for public governance and service delivery across the country.

Chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the FAAC meeting highlighted the breakdown of the revenue distribution.

The total revenue included statutory revenue amounting to ₦142.514 billion and Value Added Tax (VAT) revenue totalling ₦523.973 billion. Additionally, Electronic Money Transfer Levy (EMTL) revenue stood at ₦15.692 billion, while Exchange Difference revenue contributed ₦472.192 billion. An augmentation of ₦200 billion further bolstered the available funds.

According to the communiqué issued by FAAC, the gross statutory revenue for June was ₦1.432 trillion, marking an increase of ₦208.773 billion from May’s figures. Similarly, VAT revenue rose to ₦562.685 billion, up by ₦65.020 billion compared to the previous month.

From the total revenue of ₦1.354 trillion, the breakdown of allocations was as follows: the Federal Government received ₦459.776 billion, state governments received ₦461.979 billion, and Local Government Councils (LGCs) received ₦337.019 billion. Additionally, ₦95.598 billion, representing 13% of mineral revenue, was shared among the states as derivation revenue.

The meeting also disclosed that deductions for the cost of collection amounted to ₦92.112 billion, while total transfers, interventions, and refunds summed up to ₦1.037 trillion. Moreover, the Excess Crude Account currently holds $473,754.

This disbursement of funds underscores the ongoing effort to ensure equitable distribution of resources to facilitate development and governance at all levels across Nigeria. The allocation is expected to support various initiatives aimed at enhancing public services and infrastructure nationwide.