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The Federation Account Allocation Committee (FAAC) shared N2.001 trillion in July revenue among the federal, state, and local governments. The revenue generated from statutory sources was N1.282 trillion, with the federal government receiving N613.805 billion, state governments getting N311.330 billion, and local governments collecting N240.023 billion.
The Value Added Tax (VAT) revenue shared among the three tiers of government increased by N9.775 billion, from N630.835 billion in June to N640.610 billion in July. The breakdown of the VAT revenue is as follows: the federal government received N96.092 billion, state governments got N320.305 billion, and local governments collected N224.214 billion.
Additionally, N37.601 billion was generated from Electronic Money Transfer Levy (EMTL), with the federal government receiving N5.640 billion, state governments getting N18.801 billion, and local governments collecting N13.160 billion. The exchange difference revenue shared was N39.745 billion, with the federal government getting N19.544 billion, state governments receiving N9.913 billion, and local governments collecting N7.643 billion. Furthermore, N2.643 billion was allocated as derivation revenue to oil-producing states.
The total distributable revenue of N2.001 trillion was shared as follows: the federal government received N735.081 billion, state governments got N660.349 billion, and local governments collected N485.039 billion. Oil-producing states also received N120.359 billion as 13% derivation revenue.
The FAAC’s revenue sharing is based on a formula that allocates specific percentages to each tier of government. The revenue shared is crucial for funding government activities and providing essential services to citizens. The increase in VAT revenue is a positive development, and the FAAC’s efforts to improve revenue generation and allocation are essential for the country’s economic growth and development.
