The Federation Account Allocation Committee (FAAC) has saved N289 billion into the non-oil account for the month of September 2023
The FAAC has been operating the account since June 2023 as a buffer against hard times. It is different from the Excess Crude Account (ECA).
This is contained in the statement at the end of the monthly FAAC meeting presided over by the Finance Minister.
According to the statement, N1.594 trillion accrued into the Federation Account for the month of September as revenue and from this amount, N903.480 billion was shared among the Federal and State Governments, and Local Government Councils.
The breakdown of the total distributable revenue reveals that N423.012 billion was attributed to distributable statutory revenue, N282.666 billion came from Value Added Tax (VAT) revenue, N10.989 billion was generated from the Electronic Money Transfer Levy (EMTL), and N186.813 billion was the revenue from Exchange rate Differentials.
According to the communique: “A total revenue of N1.594 trillion was available in September 2023. After deducting the cost of collection amounting to N54.426 billion, transfers and refunds of N347.857 billion, and savings of N289.000 billion, the remaining funds were distributed”.
Notably, the gross statutory revenue for September 2023 stood at N1.014 trillion, showing an increase of N123.019 billion from the previous month of August, which saw a revenue of N891.934 billion.
On the other hand, the VAT revenue for September 2023 was recorded at N303.550 billion, reflecting a decrease of N42.177 billion from the N345.727 billion generated in August 2023.
From the total distributable revenue of N903.480 billion, the Federal Government received N320.543 billion, the State Governments received N287.071 billion, and the Local Government Councils received N210.900 billion. Furthermore, an additional sum of N84.966 billion, representing 13 percent of mineral revenue, was shared with relevant states as derivation revenue.
Of the distributable statutory revenue amounting to N423.012 billion, the Federal Government received N190.849 billion, the State Governments received N96.801 billion, and the Local Government Councils received N74.629 billion. 13 percent of mineral revenue, totaling N60.733 billion, was also distributed among the relevant states as derivation revenue.
The distributable VAT revenue of N282.666 billion saw the Federal Government receiving N42.400 billion, the State Governments receiving N141.333 billion, and the Local Government Councils receiving N98.933 billion.
Also, the Electronic Money Transfer Levy (EMTL) of N10.989 billion was shared as follows: the Federal Government received N1.648 billion, the State Governments received N5.495 billion, and the Local Government Councils received N3.846 billion.
From the revenue generated from Exchange rate Differentials which amounted to N186.813 billion, the Federal Government received N85.647 billion, the State Governments received N43.442 billion, and the Local Government Councils received N33.491 billion. Additionally, N24.233 billion, equivalent to 13 percent of mineral revenue, was distributed to the relevant states as derivation revenue
In terms of revenue sources, Petroleum Profit Tax (PPT) and Oil and Gas Royalties experienced a significant increase in September 2023. However, Value Added Tax (VAT), Import and Excise Duties, Electronic Money Transfer Levy (EMTL), Companies Income Tax (CIT), and CET Levies recorded noteworthy decreases.
The Excess Crude Account (ECA) currently holds a balance of $473,754.57.
