The Federal Account Allocation Committee (FAAC) had at its meeting shared a total sum of N990.189 billion to the 3 tiers of government as federal allocation for the month of December 2022.
This represents a 9.8% increase, when compared to the N902.053 billion that was shared with the 3 tiers of government in the month of November 2022.
This disclosure is contained in a press release by the Director, Information and Press, of the Federal Ministry of Finance, Budget and National Planning, Phil Abiamuwe-Mowete, on Tuesday, January 17, 2023, in Abuja.
Breakdown of allocation
The statement says that the Federal Government received N375.306 billion, while the states and local government councils received N299.557 billion and N221.807 billion respectively as their allocations. The oil-producing states got N93.519 billion as a derivation (13% of mineral revenues).
However, it should be noted that the amount distributed is inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Exchange Gain, and Electronic Money Transfer Levies (EMTL).
Distributable VAT revenue increases by 23.5%
The Communiqué issued by the Federation Account Allocation Committee (FAAC), at the end of the meeting, indicated that the Gross Revenue available from the Value Added Tax (VAT) for December 2022, was N250.512 billion. This shows a 23.5% increase from the VAT revenue distributed the previous month.
Also from the distributable VAT revenue, the sum of N7.215 billion was allocated to the NEDC Project and the sum of N10.020 billion to the Cost of Collection to FIRS and NC. The remaining sum of N233.277 billion was distributed as follows; Federal Government got N34.992 billion, the States received N116.639 billion, and Local Government Councils got N81.647 billion.
Accordingly, the Gross Statutory Revenue of N1136.183 billion was received for the month which was higher than the sum received in the previous month. From this amount, the sum of N31.531 billion was allocated to the cost of collection and a total sum of N396.896 billion to Transfers, Savings, and Refunds.
The remaining balance of N707.756 billion was distributed as follows; Federal Government was allocated the sum of N325.105 billion, States got N165.897 billion, Local Government Councils got N127.129 billion, and Oil Derivation (13% Mineral Revenue) got N90.625 billion.
Also, the sum of N24.315 billion from the Electronic Money Transfer Levies (EMTL) was distributed to the three (3) tiers of government as follows; the Federal Government received N3.648 billion, States got N12.157 billion, Local Government Councils received N8.510 billion.
The Communiqué further disclosed that the sum of N24.841 billion from Exchange Gain was shared thus: Federal Government received N11.562 billion, States got N5.864 billion, Local Government Councils received N4.521 billion and Oil Derivation (13% of Mineral Revenue) got N2.894 billion.
Petroleum Profit Tax (PPT), Companies Income Tax (CIT), and Value Added Tax (VAT) recorded significant increases, while Import Duty decreased considerably. Oil and Gas Royalties and Excise Duty increased marginally.
According to the Communiqué, the total revenue distributable for the current month of December was drawn from Statutory Revenue of N707.756 billion, Value Added Tax (VAT) of N233.277 billion, Exchange Gain of N24.841 billion, and N24.315 billion from Electronic Money Transfer Levies (EMTL) bringing the total distributable for the month to N990.189 billion.
However, the balance in the Excess Crude Account (ECA) as of January 17th, 2023 stands at $473,754.57.