Over N200b exchange rate differential pushes FAAC disbursement to N906.96 billion

Significant increases in import duty, petroleum profit tax (PPT), value-added tax (VAT), and electronic money transfer levy (EMTL) boosted federation revenue in October 2023, with the three tiers of government sharing N906.96 billion.

The depreciation in naira also robbed positively on the distributable incomes as the tiers of government received N202.89 billion as a gain from the exchange rate differential.

This is contained in the communiqué issued by the Federation Account Allocation Committee (FAAC) at the end of its meeting yesterday.

The communiqué said FAAC shared a total sum of N906.95 billion with the federal, state and local governments.

The total distributable revenue comprised distributable statutory revenue of N305.07 billion, VAT revenue of N 323.446 billion, EMTL revenue of N15.552 billion, exchange difference revenue of N202.887 billion and augmentation of N60 billion.

According to the communiqués, total revenue of N1.35 trillion was available in October 2023 while total deductions for the cost of collection was N53.48 billion. Transfers, interventions and refunds amounted to N386.08 billion, leaving the distributable revenue at N906.96

Gross statutory revenue of N660.09 billion was received for October 2023. This was lower than the N1.015 trillion received in September 2023 by N354.863 billion.

The gross revenue available from the VAT was N347.343 billion, which was higher than the N303.55 billion available in September by N43.79 billion.

FAAC stated that from the N906.96 billion total distributable revenue, FG received a total of N323.36 billion; state governments received N307.72 billion while local governments received N225.21 billion.

A total sum of N50.67 billion (13 per cent of mineral revenue) was shared with the relevant states as derivation revenue.

From the N305.07 billion distributable statutory revenue, FG received N147.57 billion; state governments received N74.85 billion just as local governments received N57.71 billion. About N24.94 billion (13 per cent of mineral revenue) was shared with the relevant states as derivation revenue.

About N15.55 billion EMTL was shared as follows: FG received N2.33 billion, state governments received N7.78 billion and the LGs received N5.443 billion.

FAAC reported that while in October 2023, import duty, PPT, VAT, EMTL increased significantly, excise duties and companies’ income tax (CIT) recorded a considerable fall. Oil and gas royalties also decreased, but marginally.