The Federation Accounts Allocation Committee (FAAC) on Monday disbursed a total of N2.550 trillion in revenue generated for the month of June to the three tiers of government—the Federal Government, state governments, and local government councils.
This allocation marks a significant increase of N250 billion, or 10.9 per cent, compared to the amount shared in the previous month.
The surge in revenue was attributed to stronger collections across multiple sources, including Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty, petroleum royalties, gas flaring, rental income, Minimum Operating Revenue, Value Added Tax (VAT), import duties, and Common External Tariff (CET) levies.
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The announcement was made by Mr. Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), who confirmed that the revenue distribution was approved during the most recent FAAC meeting held in Abuja.
According to the FAAC communiqué, the total distributable revenue of N2.550 trillion was derived from a gross revenue of N4.500 trillion recorded in June. Before the final distribution, N160.744 billion was deducted as the cost of revenue collection, while N1.789 trillion was allocated to transfers and refunds. The remaining balance was then shared among the three tiers of government.
Statutory Revenue Sees Significant Growth
The committee reported a substantial increase in statutory revenue for the month. Gross statutory revenue generated in June amounted to N3.700 trillion, a rise of N1.049 trillion compared to N2.651 trillion recorded in May.
VAT collections also experienced a notable uptick. Gross VAT revenue for June stood at N799.746 billion, up from N743.688 billion in May, reflecting an increase of N56.078 billion.
Breaking down the total distributable revenue of N2.550 trillion, the Federal Government received N923.438 billion. The 36 state governments collectively shared N838.208 billion, while the 774 local government councils received N591.390 billion.
Additionally, oil-producing states were allocated N197.610 billion as the constitutionally mandated 13 per cent derivation from mineral revenue.
Detailed Breakdown of Revenue Allocation
The FAAC communiqué provided a detailed breakdown of the revenue distribution.
From the statutory revenue allocation of N1.809 trillion, the Federal Government received N849.366 billion, while the states were allocated N430.810 billion.
Local government councils received N332.136 billion, and oil-producing states were credited with N197.610 billion as derivation from mineral revenue.
Regarding the distributable VAT revenue of N740.724 billion, the Federal Government was allocated N74.072 billion. The states shared N407.398 billion, while local government councils received N259.253 billion.
The FAAC also provided a performance analysis of various revenue sources for the month. Collections from Companies Income Tax, Capital Gains Tax, Stamp Duty, petroleum royalties, gas flaring, rental income, Minimum Operating Revenue, VAT, import duties, and Common External Tariff (CET) levies all recorded noticeable increases.
However, the committee noted declines in receipts from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), mineral royalties, and related fees. Revenue from excise duties posted only a slight increase during the period.