FAAC Distributes N907 Billion to Nigerian Government Tiers in June 2023
The Federation Account Allocation Committee (FAAC) has recently announced the allocation of N907.05 billion to the three tiers of the Nigerian government for the month of June 2023. This amount represents a notable increase of N120.89 billion compared to the previous month's allocation of N786.16 billion. It is also worth noting that this is the highest allocation of the year so far, marking the second increase after a consistent decline since January.
The meeting where these figures were disclosed took place in Abuja, and it was presided over by the new Accountant General of the Federation, Dr. Oluwatoyin Madein.
It's interesting to observe that despite the removal of fuel subsidies, the allocation for May was higher than that of June.
The total distributable revenue includes gross statutory revenue, Value Added Tax (VAT), electronic money transfer levies, and exchange rate difference revenue. According to the communiqué, the N907.05 billion total revenue is broken down as follows: N301.50 billion as distributable statutory revenue, N273.23 billion as distributable VAT revenue, N11.44 billion as Electronic Money Transfer Levy revenue, and N320.89 billion as Exchange Difference revenue.
The breakdown of the distribution shows that the Federal Government received N345.56 billion, the states received N295.95 billion, and the local government councils were allocated N218.06 billion. Additionally, the oil-producing states received N47.48 billion as a derivation (13 per cent of mineral revenue).
The FAAC also disclosed that there was a gross statutory revenue of N1.15 trillion for June 2023, which marked a significant increase of N451.13 billion compared to the previous month.
President Bola Tinubu has also made strides in supporting Nigeria's infrastructure development. As part of measures to mitigate the effects of petrol subsidy removal on the people, he approved the establishment of the Infrastructure Support Fund (ISF) for all 36 states of the Federation. This fund will focus on crucial areas such as transportation, agriculture, healthcare, education, power, and water resources. The aim is to boost economic competitiveness, create jobs, and enhance economic prosperity for Nigerians.
Furthermore, the committee decided to save a portion of the monthly distributable proceeds to minimize the impact of increased revenues resulting from subsidy removal and exchange rate unification on money supply, inflation, and the exchange rate. An amount of about N790 billion will be saved to complement the efforts of the Infrastructure Support Fund (ISF) and other existing and planned fiscal measures. The ultimate goal is to ensure that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.
