In July 2023, the three tiers of the Nigerian government are set to receive a record N1.959 trillion in revenue, as reported by TheCable. This staggering amount is nearly triple the N786.161 billion shared in June and more than triple the N655.93 billion in May, indicating a significant increase in revenue allocation.
The Federation Account Allocation Committee (FAAC) will convene in Abuja on Wednesday to distribute the revenue among the federal, state, and local governments based on the established sharing metrics.
Of the federally collected revenues, N1.7 trillion is derived from statutory collections, followed by N293 billion from Value Added Tax (VAT), and N12 billion from electronic money transfer charges.
While it remains unclear if Nigeria has ever recorded such high monthly revenue in its history, TheCableIndex data team conducted an analysis suggesting that the fall in the official exchange rate of the naira might have contributed to the substantial increase in revenue.
For the calculation of the forex component of federally-collected revenues for June 2023, FAAC used an exchange rate of N436.38/$. However, the exchange rate has since risen to at least N750/$. The actual exchange rate used for July’s calculations is yet to be confirmed.
FAAC consists of the minister of finance as chairman, state commissioners of finance, state accountants-general, the accountant-general of the federation, and the permanent secretary of the federal ministry of finance. Their meeting will determine the allocation of this record revenue to support various governmental activities and developmental projects across the country.
