Nigeria’s October Cash Flow: FG, States, LGs Divide N906.96bn Bounty

Infostride News reported that the Federation Account Allocation Committee (FAAC) disbursed a total of N906.96 billion among the three tiers of government for the month of October 2023. This information was disclosed in a communiqué issued at the conclusion of the latest FAAC meeting, as stated by the Director (Press and Public Relations) of the Ministry of Finance, Stephen Kilebi, on Wednesday.

The total amount shared for October marks a noteworthy increase of N3.48 billion compared to the N903.48 billion distributed in September 2023, indicating a recovery from the decrease observed in the previous month.

The allocation comprises various components such as gross statutory revenue, Value Added Tax (VAT), augmentations from Forex and Non-oil Mineral Revenue, and the electronic money transfer levy, among other sources.

According to the communiqué, even though a gross total of N1.35 trillion was generated, only N906.955 billion was distributed to the three tiers of government as Federation Allocation for October 2023. The breakdown of the total revenue distributable for the month includes statutory revenue of N305.070 billion, VAT of N323.446 billion, electronic money transfer levy of N15.552 billion, exchange difference of N202.887 billion, and augmentation of N60.000 billion, summing up to N906.955 billion.

From this total, the Federal Government received N323.355 billion, the States received N307.717 billion, the Local Government Councils got N225.209 billion, and the Oil Producing States received N50.674 billion as Derivation (13% of Mineral Revenue).

The communiqué highlighted that the Gross Revenue available from VAT for October 2023 was N347.343 billion, representing an increase from the N303.550 billion distributed in the preceding month, reflecting a substantial increase of N43.793 billion.

Out of this amount, N10.894 billion was allocated for the Cost of Collection, N10.003 billion for Transfers, Intervention, and Refunds, leaving N323.446 billion to be distributed among the three tiers of government. In this distribution, the Federal Government received N48.517 billion, the States received N161.723 billion, and the Local Government Councils received N113.206 billion.

The communiqué also highlighted that the Gross Statutory Revenue of N660.090 billion received in October was lower than the N1,014.953 trillion received in September 2023 by N354.863 billion. After allocating N38.942 billion for the Cost of Collection and N316.078 billion for Transfers, Intervention, and Refunds, the remaining balance of N305.070 billion was distributed among the three tiers of government. The Federal Government received N147.574 billion, States got N74.852 billion, Local Government Councils received N57.707 billion, and Oil Derivation (13% of Mineral Revenue) got N24.937 billion.

Furthermore, N16.199 billion from the Electronic Money Transfer Levy was distributed, with the Federal Government receiving N2.333 billion, States getting N7.776 billion, Local Government Councils receiving N5.443 billion, and N0.647 billion allocated for the Cost of Collection.

The communiqué revealed that N262.887 billion from Exchange Difference was shared among the Federal Government (N93.323 billion), States (N47.334 billion), Local Government Councils (N36.493 billion), and Derivation (13% of Mineral Revenue) (N25.737 billion). Additionally, N60.000 billion was earmarked for Transfers, Intervention, and Refunds.

The document disclosed that N60.000 billion in Augmentation was shared, with the Federal Government receiving N31.608 billion, States getting N16.032 billion, and Local Government Councils receiving N12.360 billion.

As of November 22, 2023, the Excess Crude Account maintained a balance of $473,754.57.

The communiqué further outlined that N50.674 billion was allocated for the cost of collection, and N386.081 billion was earmarked for Transfers, Intervention, and Refunds.

Notably, Petroleum Profit Tax, Import Duty, VAT, Customs External Tariff, and Electronic Money Transfer Levy experienced significant increases. In contrast, Excise Duties, Oil and Gas Royalties, and Companies Income Tax recorded a decrease, according to Infostride News.