FG, States, LGs Share N2.03trn as FAAC Disburses March Revenue

FG, States, LGs Share N2.03trn as FAAC Disburses March Revenue

JOEL OLADELE, Abuja

The Federation Account Allocation Committee (FAAC) has disbursed a total of N2.03 trillion to the three tiers of government as revenue for March, shared at its April meeting held in Abuja.

Details of the allocation were contained in a communiqué issued after the meeting, indicating that the distributable sum was drawn from multiple revenue streams, including statutory earnings, value-added tax (VAT), and an augmentation component.

According to the committee, the total distributable revenue comprised N1.32 trillion from statutory sources, N515.39 billion from VAT, and an additional N200 billion provided as augmentation to boost allocations.

The overall gross revenue available for the month stood at N2.36 trillion. However, deductions were made for cost of collection amounting to N81.084 billion, while N246.872 billion was set aside for transfers, refunds, and savings.

A breakdown of the distribution shows that the Federal Government received N789.15 billion, state governments got N657.59 billion, and the 774 local government councils shared N468.82 billion.

In addition, oil-producing states received N120.75 billion as derivation revenue, representing 13 per cent of mineral proceeds.

The communiqué also revealed that statutory revenue rose to N1.69 trillion in March, reflecting an increase of N137.91 billion compared to the N1.56 trillion recorded in February.

However, VAT earnings dipped slightly during the period. Gross VAT revenue stood at N664.43 billion, down by N4.03 billion from the N668.45 billion recorded in February, marking the second consecutive marginal decline.

From the statutory revenue component of N1.32 trillion, the Federal Government received N632.26 billion, states got N320.69 billion, while local governments were allocated N247.24 billion, alongside the derivation share for oil-producing states.

For VAT proceeds of N515.39 billion, the Federal Government took N51.53 billion, states received N283.46 billion, and local governments got N180.38 billion.

The augmentation fund of N200 billion was also shared, with the Federal Government receiving N105.36 billion, states N53.44 billion, and local councils N41.20 billion.

FAAC further noted an uptick in collections from company income tax, capital gains tax, stamp duties, and excise duty during the period. In contrast, revenues from petroleum profit tax, hydrocarbon tax, oil and gas royalties, import duties, and the Common External Tariff declined, alongside the slight drop in VAT.