Infostride News reported that the Federation Account Allocation Committee (FAAC) has announced the disbursement of N906.96 billion among the three tiers of the government for October 2023. The disclosure was made 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.
This disbursement represents a slight increase of N3.48 billion compared to the N903.48 billion shared in September 2023, indicating a recovery from the previous month’s decrease. The total amount encompasses various sources, including gross statutory revenue, Value Added Tax (VAT), augmentations from Forex and Non-oil Mineral Revenue, as well as the electronic money transfer levy (EMTL).
In terms of revenue generation, a total of N1.35 trillion was generated, but only N906.955 billion was allocated to the three tiers of government as Federation Allocation for October 2023. The breakdown of the distributable amount includes Statutory Revenue of N305.070 billion, VAT of N323.446 billion, EMTL of N15.552 billion, Exchange Difference of N202.887 billion, and Augmentation of N60.000 billion.

Further delving into the breakdown, the Federal Government received N323.355 billion from the total revenue, while the States received N307.717 billion, the Local Government Councils received N225.209 billion, and the Oil Producing States received N50.674 billion as Derivation (13% of Mineral Revenue).
The statement issued by FAAC highlighted that the Gross Revenue available from VAT for October 2023 was N347.343 billion, an increase from the N303.550 billion distributed in the preceding month, reflecting a growth of N43.793 billion. From this amount, N10.894 billion was allocated for the Cost of Collection, N10.003 billion for Transfers, Intervention, and Refunds, and the remaining N323.446 billion was distributed to the three tiers of government. The Federal Government received N48.517 billion, the States got N161.723 billion, and Local Government Councils received N113.206 billion.
Additionally, the statement revealed that the Gross Statutory Revenue of N660.090 billion for October was lower than the N1,014.953 trillion received in the previous month of September 2023 by N354.863 billion. The breakdown included N38.942 billion for the Cost of Collection, N316.078 billion for Transfers, Intervention, and Refunds, and the remaining N305.070 billion distributed to the three tiers of government: Federal Government (N147.574 billion), States (N74.852 billion), Local Government Councils (N57.707 billion), and Oil Derivation (13% Mineral Revenue) (N24.937 billion).
Furthermore, N16.199 billion from the Electronic Money Transfer Levy (EMTL) was distributed to the three tiers of government, 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 disclosed N262.887 billion from Exchange Difference, distributed as follows: Federal Government (N93.323 billion), States (N47.334 billion), Local Government Councils (N36.493 billion), Derivation (13% of Mineral Revenue) (N25.737 billion), and N60.000 billion for Transfers, Intervention, and Refunds. The N60.000 billion Augmentation was shared with the Federal Government receiving N31.608 billion, States receiving N16.032 billion, and Local Government Councils getting N12.360 billion.
As of November 22, 2023, the Excess Crude Account (ECA) maintained a balance of $473,754.57. The communiqué further detailed that N50.674 billion was allocated for the cost of collection, and N386.081 billion was earmarked for Transfers, Intervention, and Refunds.
While Petroleum Profit Tax (PPT), Import Duty, VAT, Customs External Tariff (CET), and EMTL saw significant increases, Excise Duties, Oil and Gas Royalties, and Companies Income Tax (CIT) recorded a decrease.
The FAAC’s Retreat and Meeting, which took place in Asaba, Delta State, was chaired by Wale Edun, the Honourable Minister of Finance and Coordinating Minister of the Economy. Okokon Udo, the Permanent Secretary of the Federal Ministry of Finance, represented the Minister.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate