FAAC Shares N3trn Revenue in July

FAAC Shares N3trn Revenue in July

The Federation Account Allocation Committee (FAAC) has announced the distribution of N3.007 trillion in July revenue among the federal, state and local governments.

The increase was driven by improved collection performance across oil and non-oil sources, with gross statutory revenue rising to N4.359 trillion, up N658.087 billion or 17.8% from June’s N3.700 trillion. VAT receipts held steady at N793.968 billion, though slightly down by 0.7% from June.

According to FAAC’s communiqué, the Federal Government received N1.146 trillion, states N943.352 billion, local governments N673.649 billion, while N243.478 billion (13% of mineral revenue) was shared as derivation to oil-producing states.

The committee attributed the gains to stronger collections from Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty, Petroleum Royalties, Mineral Royalties, Excise Duty and Gas Flared Penalty.

However, declines were recorded in VAT, Import Duty, CET Levies, Rental of Gas Flared Fee and Miscellaneous Oil Revenue. FAAC said it would continue working with revenue agencies to close collection gaps and improve remittance discipline.

A statement from the Office of the Accountant-General of the Federation reaffirmed FAAC’s commitment to transparent and timely remittance of revenue, diversification beyond oil, and closer alignment with the National Council of Federation and Economic Development (NACOFED).

FAAC stressed that sustaining July’s gains will depend on continued discipline in collection and remittance across MDAs, while supporting reforms to improve predictability and growth of allocations to all tiers of government.