CEM REPORT, FINANCE | A total sum of ₦966.110 billion has been shared to the three tiers of government as allocation for July 2023 by the Federation Account Allocation Committee (FAAC). The shared sum is from the earned revenue of ₦1.74 trillion.
This was contained in a communiqué issued at the end of the Federation Account Allocation Committee (FAAC) meeting for August 2023.
The meeting was chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The minister harped on the need for the government to mobilise resources to deliver on its mandate to increase employment and reduce poverty.
The communiqué signed by the Director of Press and Public Relations Bawa Mokwa indicated that the ₦966.110 billion total distributable revenue comprised distributable statutory revenue of ₦397.419 billion, distributable Value Added Tax (VAT) revenue of ₦271.947 billion, Electronic Money Transfer Levy (EMTL) revenue of ₦12.840 billion and Exchange Difference revenue of ₦283.904 billion.
In July 2023, the total deductions for the cost of collection were ₦62.419 billion and the total deductions for savings, transfers, refunds and tax credit cancellation was ₦717.962 billion.
The balance in Nigeria’s Excess Crude Account (ECA) as of August 22, 2023, was $473,754.57.
According to the communiqué, in the month of July 2023, Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased considerably while Value Added Tax (VAT) increased marginally. Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and Oil and Gas Royalties recorded significant decreases.
The communiqué stated that from the total distributable revenue of ₦966.110 billion; the Federal Government received ₦374.485 billion, the State Governments received ₦310.670 billion and the Local Government Councils received ₦229.409 billion. A total sum of ₦51.545 billion was shared with the relevant States as 13 per cent derivation revenue.
Gross statutory revenue of ₦1150.424 billion was received for the month of July 2023. This was lower than the sum of ₦1152.921 billion received in the month of June 2023 by ₦2.497 billion.
From the ₦397.419 billion distributable statutory revenue, the Federal Government received ₦190.489 billion, the State Governments received ₦96.619 billion and the Local Government Councils received ₦74.489 billion. The sum of ₦35.822 billion was shared with the relevant States as 13 per cent derivation revenue.
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For the month of July 2023, the gross revenue available from the Value Added Tax (VAT) was ₦298.789 billion. This was higher than the ₦293.411 billion available in the month of June 2023 by ₦5.378 billion.
The Federal Government received ₦40.792 billion, the State Governments received ₦135.974 billion and the Local Government Councils received ₦95.181 billion from the ₦271.947 billion distributable Value Added Tax (VAT) revenue.
The ₦12.840 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received ₦1.926 billion, the State Governments received ₦6.420 billion and the Local Government Councils received ₦4.494 billion.
From the ₦283.904 billion Exchange Difference revenue, the Federal Government received ₦141.278 billion, the State Governments received ₦71.658 billion, the Local Government Councils received ₦55.245 billion and the sum of ₦15.723 billion was shared to the relevant States as 13 percent mineral revenue.
