FAAC Allocation Increased by N169.9bn in August

• FAAC Allocation Increased by N169.9bn in August

The Federation Account Allocation Committee on Thursday shared the sum of N637.7bn among the three tiers of government.

The amount, which is for statutory allocation for the month of August, represents an increase of N169.9bn over the N467.8bn, which the committee allocated in the month of July.

Addressing journalists shortly after the meeting, which was held at the headquarters of the Ministry of Finance in Abuja, the Accountant-General of the Federation, Ahmed Idris, said there was a significant increase in revenue for August.

He put the gross statutory revenue received for the month at N550.9bn, adding that it was higher than the N387.31bn received in the previous month by N163.67bn.

He said the amount shared was distributed under two main revenue subheads.

They were statutory revenue, which had N550.9bn, and Value Added Tax of N86.71bn.

Giving a breakdown of the statutory allocation, the AGF said after deducting the cost of collection for the revenue generating agencies, the Federal Government received N260.6bn, representing 52.68 per cent; the states received N132.18bn or 26.72 per cent; while the local government councils got N101.9bn, 20.6 per cent of the total.

In addition, Idris stated that the oil producing states received N41.97bn based on the 13 per cent derivation principle.

For VAT allocation, the AGF said the Federal Government received N12.48bn, representing 15 per cent; states, N41.62bn or 50 per cent; while local government councils received N29.13bn or 35 per cent.

Idris stated, “There was a decrease in the average price of crude oil from $51.05 to $50.44 per barrel and a significant increase in export volume by 0.85 million barrels, which resulted in increased revenue from export sales revenue by about $41m.”