“Record Revenue Surge: FAAC Shares N907 Billion Amongst States, Local Governments for June 2023

In an unprecedented economic development, the Federation Account Allocation Committee (FAAC) announced a remarkable milestone, sharing a staggering N907.05 billion among the three tiers of government for the month of June 2023. This figure reflects a substantial increase of N120.89 billion compared to the previous month’s allocation, marking the highest distribution of the year so far. The committee’s momentous gathering in Abuja, chaired by the esteemed Dr. Oluwatoyin Madein, the new Accountant General of the Federation, unveiled the impressive financial progress.

The N907.05 billion allocation comprises a variety of sources, including gross statutory revenue, Value Added Tax (VAT), electronic money transfer levies, and exchange rate difference revenue. Notably, this substantial increase came despite the removal of fuel subsidies, indicating a robust economic performance. Among the beneficiaries, the Federal Government received N345.56 billion, while the states and local government councils obtained N295.95 billion and N218.06 billion, respectively. Additionally, the oil-producing states received N47.48 billion as a derivation, constituting 13 percent of the mineral revenue.

For June 2023, the gross statutory revenue reached a remarkable N1.15 trillion, a staggering N451.13 billion increase from the previous month. Further breakdown revealed the distribution of N301.50 billion in statutory revenue, with the Federal Government receiving N146.71 billion, the State Governments receiving N74.41 billion, and the Local Government Councils receiving N57.37 billion. Additionally, N23.01 billion was shared among relevant states as a 13 percent derivation revenue.

The Value Added Tax recorded a commendable revenue of N293.41 billion for June 2023, representing an impressive N23.21 billion increase from May. The Federal Government received N40.98 billion, the State Governments received N136.61 billion, and the Local Government Councils received N95.63 billion from this distributable VAT revenue. Furthermore, the Electronic Money Transfer Levy amounted to N11.44 billion, with the Federal Government, State Governments, and Local Government Councils receiving N1.72 billion, N5.72 billion, and N4 billion, respectively.

A significant N320.89 billion exchange difference revenue was also shared, with the Federal Government receiving N156.16 billion, the State Governments receiving N79.20 billion, the Local Government Councils receiving N61.06 billion, and N24.47 billion being distributed among relevant states as 13 percent mineral revenue.

Notably, Companies Income Tax experienced tremendous growth, while Import and Excise Duties, Value Added Tax, and Oil and Gas Royalties also saw notable increases. On the other hand, Petroleum Profit Tax and Electronic Money Transfer Levy witnessed a decline.

In a separate announcement from the state house, President Bola Tinubu demonstrated his commitment to alleviating the impact of the petrol subsidy removal on the people. He approved the establishment of an Infrastructure Support Fund for the 36 States of the Federation, aimed at empowering them to invest in crucial areas such as transportation, agriculture, healthcare, education, power, and water resources. This strategic move is expected to foster economic competitiveness, job creation, and overall prosperity for Nigerians.

To further mitigate the consequences of increased revenues arising from the subsidy removal and exchange rate unification, the committee resolved to save a portion of the monthly distributable proceeds. Approximately N790 billion will be preserved to complement the efforts of the Infrastructure Support Fund and other fiscal measures, all aimed at tangibly improving the lives and living standards of Nigerians.

This latest economic breakthrough holds great promise for the nation’s growth and development, as Nigeria embraces prudent financial management and strategic investments in critical sectors to secure a prosperous future for its citizens.