By Samuel Bankole
In August 2023, the Federation Account Allocation Committee (FAAC) distributed a substantial sum, amounting to N1.80 trillion, to the three tiers of government from revenue generated in the previous month.
In its latest report on revenue allocation to the three tiers of government, federal, state, and local government, the National Bureau of Statistics (NBS), stated that the distribution is derived from the total revenue generated in July 2023, encompassing several components.
The disbursement breakdown included N1.15 trillion from the Statutory Account, N56.31 billion stemming from the Exchange Rate Differential, N283.91 billion attributed to exchange gains, N13.37 billion accrued from the Electronic Money Transfer Levy, and N298.79 billion sourced from value-added tax.
In terms of the beneficiaries, the allocations were as follows: the Federal Government received a substantial share, totaling N391.93 billion, while the States were apportioned N319.52 billion, and local governments obtained N236.23 billion.
Additionally, a sum of N56.49 billion was distributed among the oil-producing states from the 13 percent derivation fund.
The revenue-generating agencies, which consist of the Nigeria Customs Service (NCS), the Federal Inland Revenue Service (FIRS), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), were granted funds as compensation for their revenue collection efforts.
Specifically, N15.51 billion, N39.53 billion, and N7.38 billion were allocated to these agencies, respectively.
Further examination of the revenue allocation and distribution to the Federal Government of Nigeria (FGN) reveals a more detailed disbursement pattern.
Notably, the FGN consolidated revenue account received N273.96 billion, while N6.63 billion was designated as a share of derivation and ecology.
Additionally, N3.31 billion was allocated to the stabilisation fund, N11.14 billion was earmarked for the development of natural resources, and N9.38 billion was directed to the Federal Capital Territory (FCT)—Abuja.
These allocations exemplify the multifaceted and precise nature of the economic transactions within the Nigerian fiscal landscape.
(Edited by Oludare Mayowa; firstname.lastname@example.org; Newsroom: +234 8033 964 138)