FAAC Shares Out N1.354 Trillion Bumper Payout to Federal, State, and LGs in July, Up N200 Billion

By Barnabas Augustine 

The Federation Account Allocation Committee (FAAC) has doled out a whopping N1.354 trillion to the federal, state, and local governments for July. This represents a substantial increase of over N200 billion compared to the previous month's allocation.

The financial windfall, as revealed by FAAC chairman and Finance Minister Wale Edun, saw the federal government pocket N459.776 billion, while states and local governments received N461.979 billion and N337.019 billion respectively. Oil-producing states also enjoyed a boost of N95.598 billion from derivation.

Beyond the primary allocations, the committee earmarked N92.112 billion for collection costs and a hefty N1.037 trillion for transfers, interventions, and refunds.

A breakdown of the revenue sources shows that statutory revenue contributed N142.514 billion, while Value Added Tax (VAT) generated a robust N523.973 billion. The Electronic Money Transfer Levy (EMTL) chipped in with N15.692 billion, and exchange differences added N472.192 billion to the pot. An additional N200 billion was also injected to augment the total.

VAT collections for July saw a significant jump of N65.020 billion compared to the previous month, reaching a total of N562.685 billion. After deducting collection costs and transfers, the remaining N523.973 billion was shared among the three tiers of government.

The committee also distributed N16.346 billion from the EMTL to the federal, state, and local governments, with a portion allocated for collection costs.

Furthermore, the N472.192 billion in exchange differences was shared among the federal government, states, local governments, and oil-producing states.

The federal government also received an additional N105.360 billion from the N200 billion augmentation, with the remainder going to states and local governments.

As of July, the Excess Crude Account held a balance of $473,754.57.

These figures underscore a period of relative financial buoyancy for the nation, but challenges remain in ensuring equitable distribution and optimal utilisation of these funds.