The Federation Account Allocation Committee (FAAC) has disbursed a total sum of N1.101 trillion in revenue generated in August 2023 to the three tiers of the Nigerian government. This monthly allocation from the Joint Federation Account was shared among the federal government, state governments, and local government areas.
Despite the notable increase in monthly revenue generation, the balance in the excess crude account (ECA) has remained stagnant at $473,754.57, as indicated by a communique issued by FAAC after its September 2023 meeting.
The communique outlined that the total revenue available in August 2023 was N1.483902 trillion, with total deductions for the cost of collection at N58.755 billion, total transfers and refunds at N254.046 billion, and savings at N71.000 billion.
The total distributable revenue of N1.1 trillion comprised distributable statutory revenue (N357.398 billion), Value Added Tax (VAT) revenue (N321.941 billion), electronic money transfer levy (N14.102 billion), exchange rate differential (N229.568 billion), and an augmentation of NN177.092 billion.
The gross statutory revenue for August 2023 was N891.934 billion, reflecting a decrease from the N1,150,424 trillion received in July 2023 by N258.490 billion. The gross revenue available from VAT increased to N345.727 billion, up from N298.789 billion in July 2023.
From the total distributable revenue, the federal government received N431.245 billion, state governments and the FCT received N361.188 billion, and local government areas got N266.538 billion.
A breakdown of the figures revealed that the federal government received N173.102 billion from the distributable statutory revenue, N48.291 billion from VAT revenue, and N2.115 billion from the electronic transfer levy.
The exchange rate differential of N229.568 billion was shared with the federal government receiving N114.445 billion, state governments receiving N58.048 billion, and local government areas receiving N44.752 billion.
The augmentation of NN177.092 billion saw the federal government receiving N93.292 billion, state governments receiving N47.319 billion, and local government areas receiving N36.481 billion.
Additionally, N26.473 billion (13 percent of mineral revenue) and N14.657 billion (13 percent of savings from NNPC) were shared with relevant states as derivation revenue.
Despite the significant allocation, the excess crude account remains at $473,754.57, raising questions about fiscal management and savings strategies amidst increased revenue generation.
