The Federation Account Allocation Committee (FAAC) has announced the distribution of N907.05bn among the three tiers of government for June 2023. This amount reflects a slight increase of N120.89bn compared to the N786.16bn distributed in May 2023, making it the highest distribution this year and the second consecutive increase after a decline since January. The meeting, chaired by the new Accountant General of the Federation, Dr Oluwatoyin Madein, discussed the distribution of gross statutory revenue, Value Added Tax (VAT), electronic money transfer levies, and exchange rate difference revenue.The breakdown of the distribution shows that the Federal Government received N345.56bn, the states received N295.95bn, the local government councils received N218.06bn, and the oil-producing states received N47.48bn as derivation (13% of mineral revenue).It is worth noting that despite the removal of fuel subsidies, the increase recorded for May was higher than that of June. The communique revealed that a gross statutory revenue of N1.15tn was received in June 2023, which is a significant increase from the N701.79bn received in the previous month.In terms of specific revenue sources, the distributable statutory revenue amounted to N301.50bn, with the Federal Government receiving N146.71bn, the state governments receiving N74.41bn, and the local government councils receiving N57.37bn. Additionally, N23.01bn was allocated as 13% derivation revenue to relevant states.From the distributable Value Added Tax revenue of N273.23bn, the Federal Government received N40.98bn, the state governments received N136.61bn, and the local government councils received N95.63bn.The Electronic Money Transfer Levy of N11.44bn was shared, with the Federal Government receiving N1.72bn, the state governments receiving N5.72bn, and the local government councils receiving N4bn.Lastly, the Exchange Difference revenue of N320.89bn was allocated with the Federal Government receiving N156.16bn, the state governments receiving N79.20bn, and the local government councils receiving N61.06bn. An additional N24.47bn was distributed as 13% mineral revenue to relevant states.Total deductions for cost of collection amounted to N73.24bn, while deductions for savings, transfers, and refunds reached N979.08bn. The remaining balance in the Excess Crude Account was $473,754.57.In separate news, President Bola Tinubu has approved the establishment of an Infrastructure Support Fund for the 36 states of the federation. This initiative aims to mitigate the impact of petrol subsidy removal on the people. The Infrastructure Fund will allow states to invest in critical areas such as transportation, agriculture, health, education, power, and water resources, with the goal of enhancing economic competitiveness and creating jobs. Additionally, a portion of the monthly distributable proceeds will be saved to minimize the impact of increased revenues on money supply, inflation, and the exchange rate. Approximately N790bn will be saved to complement the efforts of the Infrastructure Support Fund and other fiscal measures, ultimately improving the lives and living standards of Nigerians.
Source: Punch
