FAAC’s Gross Revenue Drops by ₦45.085 Billion In May

By Tolulope Oke

The Federation Account Allocation Committee (FAAC) has witnessed a decline in gross statutory revenue by ₦45.085 billion in the month of May.

According to the communiqué obtained at the end of the FAAC meeting for June, gross statutory revenue of ₦589.952 billion was received for the month of May 2022. This was ₦45.085 billion less than the ₦635.037 billion received the month prior.

Meanwhile, the gross revenue available from the Value Added Tax (VAT) was ₦213.179 billion. This was higher than the ₦178.825 billion available in the month of April 2022 by ₦34.354 billion.

Accordingly, the communique revealed a total sum of ₦680.783 billion was shared among the Federal Government, States, and Local Government Councils.

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The Federal Government received 229.563 billion, the State Governments received 241.824 billion, and the Local Government Councils received 175.942 billion out of the total distributable revenue of 680.783 billion. The relevant States received a portion of 33.454 billion or 13 percent of the derivation revenue.

The distributable statutory revenue of 385.004 billion, distributable Value Added Tax (VAT) revenue of 198.512 billion, and distributable Electronic Money Transfer Levy (EMTL) revenue of 97.267 billion made up the total revenue of 680.783 billion.

From the ₦198.512 billion distributable Value Added Tax (VAT) revenue, the Federal Government received ₦29.777 billion, the State Governments received ₦99.256 billion and the Local Government Councils received ₦69.479 billion.

From the ₦97.267 billion Electronic Money Transfer Levy, the federal government received ₦14.590 billion, state governments received ₦48.534 billion, and local government councils received ₦34.043 billion (EMTL).

While import duty increased somewhat, petroleum profit tax (PPT) and excise duties slightly declined, companies income tax (CIT) and value-added tax (VAT) experienced significant rises. Royalties from oil and gas production sharply declined.