Federal allocation drops again as FG, states share N655bn

Federal allocation drops again as FG, states share N655bn
Minister of Finance, Budget and National Planning, Zainab Ahmed

 

The Federation Account Allocation Committee says it shared N655.93bn among the three tiers of government in April 2023.

The figure represents a decrease of N58.7bn compared to the N714.63bn shared in March 2023.

FAAC disclosed this in a communiqué issued at the end of its latest meeting in Abuja on Thursday.

Media observed that the allocation shared has been on a decline throughout this year.

The total amount includes gross statutory revenue, Value Added Tax, Augmentations from Forex and Non-oil Mineral Revenue, and electronic money transfer levies.

The Federal Government received N248.81bn, the states received N218.31bn, and the local government councils got N160.6bn, while the oil-producing states received N28.22bn as derivation (13 per cent of mineral revenue).

It was also noted that the gross revenue available from the Value Added Tax for the month of April 2023 was N217.74bn, with the cost of collection taking N8.71bn, and the rest was shared among the Federal Government, States and Local Government Councils.

The breakdown showed “From that amount, the sum of N8.71bn was allocated for Costs of Collection and the sum of N6.271 given for Transfers and Refunds. The remaining sum of N202.76bn was distributed to the three tiers of government of which the Federal Government got N30.41bn, the States received N101.38bn, Local Government Councils got N70.97bn.”

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For the Gross Statutory Revenue, N497.46bn was received, with the sum of N18.79bn as the Cost of Collection and a total sum of N114.02bn for Transfers, Refunds and Consultancy fees.

The remaining balance of N364.65bn was shared with the Federal Government (N180.66bn), States (N91.63bn), and LGCs got (N70.65bn), while Oil Derivation (13 per cent Mineral Revenue) got N21.72bn.

The communique added that the sum of N15.12bn from the electronic money transfer Levies was distributed to the three tiers of government.

The breakdown for EMTL showed “the Federal Government received N2.18bn, States got N7.26bn, Local Government Councils received N5.08bn and the sum of N0.61bn was allocated to Costs of Collection.”

It added, “The Communique disclosed an Augmentation N50bn from Forex Equalization, which was shared as follows; Federal Government received N22.92bn, the States got N11.62bn, the sum of N8.96bn allocated to Local Government Councils, while the sum of N6.5bn given to Derivation (13 per cent of Mineral Revenue).

“Also, N24bn Augmentation from Non Mineral Revenue was shared accordingly. The Federal Government got N12.64bn, the States received N6.41bn, while the Local Government Councils got N4.94bn.”

It was noted that Petroleum Profit Tax, Companies Income Tax, Oil and Gas Royalties, Import and Excise Duties and Value Added Tax all decreased considerably, only Electronic Money Transfer Levy increased albeit marginally.

It added, “The balance in the Excess Crude Account as at May 18, 2023 stands at $473,754.57.”

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