The Federation Account Allocation Committee (FAAC) has given its approval for the allocation of N786.161 billion as revenue to the three tiers of government from the accruals into the federation account for the month of May 2023. This amount comprises gross statutory revenue, Value Added Tax (VAT), electronic money transfer levy, and exchange rate differential.
Out of the total gross revenue, the federal government received N301.889 billion, while the 36 states received N265.875 billion. The 774 local government areas were allocated N195.541 billion, and the oil-producing states received N22.855 billion as part of the 13 percent derivation.
The gross statutory revenue for the month amounted to N701.787 billion, surpassing the previous month’s total of N497.463 billion received in April 2023. From this amount, N26.831 billion was set aside for the cost of collection, and N155.411 billion was allocated for transfers and refunds.
The remaining balance of N519.545 billion was distributed as follows: the federal government received N261.686 billion, the states obtained N132.731 billion, the local government areas received N102.330 billion, and the oil derivation share amounted to N22.798 billion.
According to a statement released at the conclusion of the monthly FAAC meeting, N270.197 billion was generated from VAT, reflecting an increase from the N217.743 billion distributed in the previous month. Out of this amount, the Federal Inland Revenue Service received N10.808 billion for tax collection costs, and N7.782 billion was allocated for transfers and refunds. The remaining N251.607 billion was shared among the three tiers of government, with the federal government receiving N37.741 billion, the states obtaining N125.804 billion, and the local government areas receiving N88.062 billion.
Furthermore, N14.969 billion from the electronic money transfer levy was distributed among the three tiers of government. The federal government received N2.155 billion, the states were allocated N7.185 billion, the local government areas obtained N5.030 billion, and N0.599 billion was set aside for the cost of collection.
Regarding the exchange differential, N0.639 billion was shared, with the federal government receiving N0.307 billion, the states receiving N0.156 billion, the local governments receiving N0.119 billion, and N0.057 billion allocated for the 13 percent derivation.
The FAAC report indicates that the total revenue distributable for May 2023 included N519.545 billion from statutory revenue, N251.607 billion from VAT, N14.370 billion from electronic transfers, and N0.639 billion from the exchange difference, resulting in a total distributable amount of N786.161 billion.
As of June 22, 2023, the balance in the Excess Crude Account (ECA) stands at $473,754.57.
