FAAC Distributes N903.48bn in September to FG, States, and LGs

Infostride News reports that the Federation Account Allocation Committee (FAAC) has recently disbursed a total sum of N903.48 billion to the three tiers of government for the month of September 2023. This revelation was made during FAAC’s latest meeting, which was chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

This allocation marks a significant decrease compared to the previous month, August 2023 when a total of N1.1 trillion was distributed. Notably, this decrease represents the first decline in revenue since May.

According to reports from Infostride News, the breakdown of the allocation for September 2023 is as follows: the Federal Government received N320.54 billion, the states were allocated N287.07 billion, the Local Government Councils received N210.9 billion, and the oil-producing states were granted N84.97 billion as derivation, which corresponds to 13 percent of mineral revenue.

In the communiqué issued by FAAC during its October 2023 meeting, it was disclosed that the total distributable revenue of N903.48 billion consisted of distributable statutory revenue (N423.01 billion), Value Added Tax revenue (N282.67 billion), Electronic Money Transfer Levy revenue (N10.99 billion), and Exchange Difference revenue (N186.81 billion). The total revenue available in September 2023 was N1.59 trillion.

A noteworthy allocation was also made for the cost of collection, which amounted to N54.43 billion. Additionally, a significant sum of N347.86 billion was allocated to Transfers and Refunds, while N289 billion was transferred to Non-Oil Revenue (Savings) for the month of September 2023.

Infostride News further reports that the Gross Statutory Revenue for September 2023 amounted to N1,014.95 billion. This figure represents a substantial increase compared to the previous month when N891.934 billion was recorded, indicating an increment of N123.019 billion.

The allocation of funds by FAAC is a crucial aspect of fiscal management in Nigeria. It ensures that the funds generated from various revenue sources are equitably distributed to the different tiers of government to support public services, infrastructure development, and other essential functions.

FAAC meetings are vital for the coordination of fiscal activities among the tiers of government and contribute to transparency and accountability in the allocation of resources. As the country’s financial landscape continues to evolve, the accurate reporting and communication of these allocations, as seen in Infostride News, are essential for promoting financial stability and the well-being of Nigerian citizens.