FAAC shares N2.338trn to FG, states, LGs

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By Emma Ujah, Abuja Bureau Chief

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The Federation Account Allocation Committee (FAAC) has shared N2.338 trillion among the Federal Government, state governments and the 774 local government councils.

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The allocation was approved at the FAAC meeting held in Abuja on Thursday, according to a communiqué issued by the Office of the Accountant-General of the Federation.

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The amount represents a decline of about N699 billion from the over N3 trillion shared among the three tiers of government in the previous month.

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The distributable revenue comprised N1.565 trillion from statutory revenue and N773.233 billion from Value Added Tax (VAT) generated in August.

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FAAC disclosed that total gross revenue available for the month stood at N3.685 trillion.

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Of the gross revenue, N125.142 billion was deducted as the cost of collection, while N1.221 trillion was set aside for transfers, refunds and savings before the balance was distributed.

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Under the revenue-sharing arrangement, the Federal Government received N804.897 billion, while the 36 states received N794.313 billion.

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The 774 local government councils received N555.142 billion, while oil-producing states received N184.388 billion as the 13 per cent derivation from mineral revenue.

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A breakdown of the statutory revenue showed that the Federal Government received N727.573 billion, states got N369.035 billion, while local governments received N284.511 billion.

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The sum of N184.388 billion was also allocated to benefiting states as derivation revenue.

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From the N773.233 billion VAT revenue, the Federal Government received N77.323 billion, state governments got N425.278 billion, while local governments received N270.632 billion.

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The committee also reported a decline in statutory revenue during the period.

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Gross statutory revenue fell to N2.850 trillion in August from N4.359 trillion recorded in July, representing a decline of N1.508 trillion.

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In contrast, gross VAT revenue increased to N834.843 billion in August from N793.968 billion in July, representing an increase of N40.875 billion.

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According to the communiqué, revenue inflows from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), VAT, Customs and Excise Duties (CET) levies and Excise Duty recorded significant increases in August.

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