FG, States, LGs share N1.7 trillion FAAC allocation for January

The Federal Government, states, and local councils shared a total of N1.703 trillion as Federation Account Allocation for January, according to the Federation Account Allocation Committee (FAAC).

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The disbursement, announced following FAAC’s February meeting chaired by Finance Minister Wale Edun, reflects a surge in statutory revenue.

The total allocation was drawn from a gross revenue of N2.641 trillion, comprising statutory revenue, Value Added Tax (VAT), and the Electronic Money Transfer Levy (EMTL).

From this, the Federal Government received N552.6 billion, states were allocated N590.6 billion, and local government councils received N434.6 billion. Oil-producing states were granted N125.3 billion as 13 per cent derivation revenue.

Breakdown

Statutory revenue contributed N1.848 trillion to the total, an increase of N622.1 billion from the previous month.

After deductions for collection costs and transfers, the remaining N749.7 billion was distributed, with the Federal Government receiving N343.6 billion, states N174.3 billion, and local councils N134.4 billion. Oil-producing states were allocated N97.5 billion as derivation revenue.

VAT revenue for January stood at N771.9 billion, up from N849.6 billion in the preceding month. Of this, N718.8 billion was shared among the three tiers of government.

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The Federal Government received N107.8 billion, while states and local councils received N359.4 billion and N251.6 billion, respectively.

FAAC also disbursed N21.4 billion from the Electronic Money Transfer Levy (EMTL), with the Federal Government receiving N3.1 billion, states N7.2 billion, and local councils N10.3 billion.

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Additionally, an augmentation of N214 billion was approved to support government finances, with the Federal Government receiving N98.1 billion, states N49.7 billion, local councils N38.4 billion, and oil-producing states N27.8 billion.

FAAC said that revenues from VAT, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), excise duties, import duties, and CET levies recorded significant growth in January. However, earnings from EMTL and oil and gas royalties declined.