Sharing Nigeria’s April FAAC Revenue: FG, States, and LGAs Receive N655.9 billion
In the month of April 2023, the Federation Account Allocation Committee (FAAC) distributed a total of N655.932 billion as revenue from the Federation Account to the federal, state, and local governments. This information was shared through a communiqué issued at the conclusion of the FAAC meeting in May 2023. The allocated amount consists of various revenue streams, including gross statutory revenue, value-added tax (VAT), exchange gain, electronic money transfer levies, and augmentations from forex and non-oil mineral revenue.
Federal Government’s Allocation:
Of the total revenue, the Federal Government received N248.809 billion. This allocation is crucial for the central government to fund various developmental projects, social welfare programs, and essential services. The funds play a significant role in sustaining the nation’s economy and promoting growth.
Allocation to States and LGAs:
The states collectively received N218.307 billion, while the local government councils were allocated N160.600 billion. These funds are vital for state and local governments to carry out their responsibilities, such as infrastructure development, healthcare services, education, and other grassroots initiatives. The distribution of revenue to the states and local government councils allows for equitable development across the nation.
Derivation Fund for Oil-Producing States:
Additionally, oil-producing states received N28.216 billion as part of the derivation fund. This fund, amounting to 13% of the mineral revenue, aims to compensate these states for the environmental impact and extraction of their natural resources. The derivation fund plays a crucial role in supporting the development of oil-producing regions and improving the lives of their residents.
Value-Added Tax (VAT) Revenue:
The communiqué also highlighted the gross revenue available from VAT for April 2023, which amounted to N217.743 billion. This figure represented a decrease compared to the previous month. After deducting N8.710 billion for collection costs and N6.271 billion for transfers and refunds, the remaining N202.762 billion was distributed among the three tiers of government. The Federal Government received N30.414 billion, the states received N101.381 billion, and the local government councils were allocated N70.967 billion.
Gross Statutory Revenue:
The gross statutory revenue for April 2023 amounted to N497.463 billion, which was lower than the previous month’s figure of N638.673 billion. After deducting N18.793 billion for collection costs and N114.016 billion for transfers and refunds, the remaining N364.654 billion was distributed among the federal, state, and local governments. The Federal Government received N180.659 billion, states received N91.632 billion, local government councils received N70.647 billion, and N21.716 billion was allocated to oil derivation (13% mineral revenue).
Electronic Money Transfer Levy (EMTL):
Lastly, N15.121 billion from the Electronic Money Transfer Levy (EMTL) was distributed among the three tiers of government. The Federal Government received N2.177 billion, states received N7.258 billion, local government councils received N5.081 billion, and N0.605 billion was allocated for collection costs.
The distribution of N655.932 billion from the April 2023 Federation Account Revenue is crucial for the sustenance and development of Nigeria. The allocation to the federal, state, and local governments enables them to fulfill their respective responsibilities and provide essential services to the people. It is essential to ensure transparency and accountability in the management of these funds to promote effective governance and achieve socio-economic progress across the nation.