FAAC Disbursement Declines on Lower VAT, Statutory Revenue Inflows
The Federal Government, states and local government councils have shared a total of N1.79 trillion in federation revenue for the month under review, reflecting a decline in distributable funds compared with the previous month.
From the total allocation, the Federal Government received N747.159 billion, while state governments got N601.731 billion. The local government councils (LGCs) were allocated N445.266 billion, while oil-producing states received N134.355 billion as 13 per cent derivation revenue from mineral sources.
In addition, N84.251 billion was set aside as the cost of collection, while N330.625 billion was earmarked for transfers, interventions and refunds.
Breakdown of revenue from Value Added Tax (VAT) showed a significant drop during the period. Gross VAT revenue stood at N563.042 billion, down from N719.827 billion distributed in the previous month, representing a decline of N156.785 billion.
From the VAT proceeds, N22.522 billion was deducted for the cost of collection, while N54.682 billion was allocated to transfers, intervention programmes and refunds.
The balance of N485.838 billion was distributed among the three tiers of government, with the Federal Government receiving N72.876 billion, states N242.919 billion, and local government councils N170.043 billion.
Similarly, Gross Statutory Revenue for the month stood at N1.736 trillion, a sharp decline from the N2.164 trillion recorded in the preceding month, indicating a reduction of N427.969 billion.
From the statutory revenue, N59.993 billion was deducted as cost of collection, while N273.925 billion was allocated for transfers, interventions and refunds.
The remaining N1.403 trillion was shared among the tiers of government, with the Federal Government receiving N668.336 billion, states N338.989 billion, and local government councils N261.346 billion. Oil-producing states again received N134.355 billion as derivation revenue.
Meanwhile, proceeds from the Electronic Money Transfer Levy (EMTL) also contributed to the month’s allocation. A total of N43.400 billion from EMTL was distributed, with the Federal Government receiving N5.947 billion, states N19.823 billion, and local government councils N13.876 billion.
From the EMTL revenue, N1.736 billion was deducted for the cost of collection, while N2.018 billion was allocated to transfers, refunds and savings.
The latest revenue distribution highlights continued pressure on federation earnings, driven largely by lower VAT and statutory inflows, raising concerns over fiscal sustainability for governments at all levels.
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