Allocation Increases In November As The FG, States, And LGs Share N675.9 Billion

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Allocation Increases In November As The FG, States, And LGs Share N675.9 Billion
Allocation Increases In November As The FG, States, And LGs Share N675.9 Billion

The Federal Accounts Allocation Committee (FAAC) distributed N675.946 billion from the federation account to the Federal, States, and Local Government Councils on Friday.

This is an N4.036 billion or 0.6 percent increase over the N671.910 billion shared last month for the month of October.

This disclosure was made in a statement issued on Saturday in Abuja by Mr Olajide Oshundun, Acting Director, Information, Federal Ministry of Finance, Budget, and National Planning.

According to Oshundun, the total distributable revenue of N675.946 billion included distributable statutory revenue of N488.674 billion, distributable Value Added Tax (VAT) revenue of N182.678 billion, Exchange Gain of N4.156 billion, and recovered excess bank charges of N0.438 billion.

According to NAN, he stated that the Federal Government received N261.441 billion of the total distributable revenue, while states and local councils received N210.046 billion and N155.456 billion, respectively.

An additional sum of N49.003 was distributed to the relevant oil-producing states as 13 percent derivation revenue, while VAT revenue collected in November was N196.175 billion, up from N166.284 billion in October, representing a N29.891 billion increase.

According to Oshundun, the Federal Government received N27.402 billion from VAT revenue, while states and local councils received N91.339 billion and N63.937 billion, respectively.

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The cost of revenue collection for the Federal Inland Revenue Service, the Nigerian Customs Service, and the Nigerian Upstream Petroleum Regulatory Commission was N7.847 billion, which was deducted from the N196.175 billion gross VAT revenue, while the North East Development Commission project received N5.650 billion.

He stated that the statutory revenue of N643.481 billion distributed in November was N235.617 billion higher than the N407.864 billion received in October, from which the Federal Government received N231.863 billion.

He explained that states received N117.604 billion, local councils received N90.668 billion, derivation (13 percent mineral revenue) received N48.540 billion, collection cost N23.110 billion, and transfers and refunds received N131.258 billion.

He also stated that in November, VAT, Petroleum Profit Tax, oil and gas royalties, and Companies Income Tax increased significantly, while Import and Excise Duties increased marginally.

According to Oshundun, the revenue allocation was made at a virtual Federation Accounts Allocation Committee meeting presided over by the ministry’s Permanent Secretary, Mr Aliyu Ahmed.