September FAAC Allocation: N903.4 Billion Split Among FG, States, and Local Governments

The Federation Account Allocation Committee (FAAC) has, in its latest meeting held in October 2023, disbursed a total of N903.4 billion in Federation Account Revenue for the month of September 2023 to various tiers of the government in Nigeria. This allocation, as reported by Infostride News, encompasses the Federal Government, States, and Local Government Councils, signifying a crucial financial transaction that impacts the entire nation.

This substantial sum of N903.480 billion is a culmination of various revenue streams. According to FAAC, it comprises N423.012 billion in distributable statutory revenue, N282.666 billion in distributable Value Added Tax (VAT) revenue, N10.989 billion in Electronic Money Transfer Levy (EMTL) revenue, and N186.813 billion in Exchange Difference revenue. These figures underscore the multifaceted nature of the revenue sources that contribute to the financial well-being of the nation.

In line with the details released by the Director of Information, Stephen Kilebi, the breakdown of the deductions and allocations is as follows: In the course of September 2023, the total deductions for the cost of collection amounted to N54.4 billion, while the total deductions for transfers, savings, and refunds reached N289 billion. These deductions are a crucial part of the revenue-sharing process, ensuring that the necessary operational costs are covered, and funds are allocated appropriately.

Gross Statutory Revenue, a pivotal component of the financial proceedings, amounted to N1.01 trillion in September 2023. This figure represents a substantial increase of N123.019 billion over the N891.934 billion received in the preceding month, August 2023. Out of this impressive sum, N41.826 billion was allocated for collection costs, N339.115 billion for transfers and refunds, and N211.000 billion was transferred to the Non-Oil Revenue Savings. These allocations serve to support the various financial functions and obligations of the government.

The remaining balance of N423.012 billion was then distributed among the three tiers of government. The Federal Government received N190.849 billion, while the States were allocated N96.801 billion. Local Government Councils received N74.629 billion, and the Oil Derivation (13% Mineral Revenue) was granted N60.733 billion. These allocations are instrumental in supporting the operations and services provided by the respective tiers of government and promoting equitable distribution.

Electronic Money Transfer Levy (EMTL) revenue played a notable role in the financial allocation. N11.447 billion from EMTL was distributed among the three tiers of government. The Federal Government received N1.648 billion, the States obtained N5.495 billion, while Local Government Councils received N3.846 billion. An additional N0.458 billion was set aside for collection costs, demonstrating the importance of carefully managing the revenue streams and associated costs.

The Exchange Difference, another noteworthy contributor, brought in N264.813 billion. This sum was allocated as follows: the Federal Government received N85.647 billion, the States obtained N43.442 billion, and Local Government Councils were allocated N33.491 billion. The Derivation (13% of Mineral Revenue) received N24.233 billion, and N78.000 billion was transferred to the Non-Oil Revenue Savings. These allocations reflect the intricate interplay between different revenue sources and the careful distribution to meet the financial needs of various entities within the government.

Furthermore, it’s worth noting that the Excess Crude Account balance was reported to remain at $473,754.57. This account serves as a strategic financial reserve to stabilize government finances during periods of oil price volatility. It underscores the importance of prudent fiscal management and the role of these reserves in maintaining financial stability.

In conclusion, the latest disbursement of N903.4 billion in Federation Account Revenue for September 2023, as shared by FAAC, demonstrates the complexity and importance of financial operations within the Nigerian government. The allocation of funds to the Federal Government, States, and Local Government Councils, as well as the management of various revenue streams and deductions, is a crucial aspect of maintaining the nation’s financial stability and supporting the diverse needs of different governmental entities. The Excess Crude Account’s steady balance further exemplifies the government’s commitment to financial responsibility and preparedness in the face of economic fluctuations. Infostride News will continue to provide updates on these financial matters to keep the public informed and engaged with the nation’s financial health.