The Federation Account Allocation Committee (FAAC) has disbursed the revenue received in May to the three tiers of government in June, 2023.
From the total revenue generated in May, 2023, the committee made a total disbursement of N1.134 trillion to the three tiers of government which are the federal government, the states and local government areas in the country.
The disbursed revenue was accumulated from different sources from the economy which include N701.79 billion from the statutory account, N146.43 billion exchange rate differential, N14.97 billion generated from the electronic money transfer levy (EMTL), N0.64 billion exchange gain allocation, and N270.20 billion generated from valued Added Tax (VAT).
In June, as disbursed by the committee, the federal government received N369 billion, all the 36 states received N299.92 billion while the sum of N221.79 was given to the local government areas.
Meanwhile, the revenue generating agencies comprising Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Department of Petroleum Resources (DPR) also received N10.77 billion, N23.62 billion, and N3.85 billion respectively, as cost of revenue collections just as N41.89 billion was shared among the oil-producing states from the 13% derivation fund.
The statutory allocation means funds provided by the department to the authority for the performance of statutory functions., that is, a duty that is determined by a law or rule while the value-added tax (VAT) is a consumption tax on goods and services that is levied at each stage of the supply chain where value is added, from initial production to the point of sale.
Available data show that a few states received the highest revenues from FAAC in June while some states also received lowest revenues.
Those with the highest receipts in June 2023 include, Delta State that received N38.7 billion; Rivers State received N27.2 billion; Akwa Ibom got N24.2 billion; Bayelsa State got N19.6 billion; Lagos State got N14.9 billion just as Kano with 44 local government received N10.6 billion.
States that received the lowest revenues are Ogun State which got N5.01 billion; Osun State that got N5.08 billion; Gombe State received N5.17 billion; Ekiti State received N5.23 billion; Kwara State received N5. 26 billion just as Cross River with 18 local government received N5.39 billion.
It should be noted that the national revenues are usually disbursed using the following criteria which include land mass, oil production, contribution to VAT revenue, amongst others.
