States and local government areas received reduced federal allocations in August, an implication of Nigeria’s dwindling oil and non-oil earnings.
The three tiers of government, including the federal government, shared N673.137bn for the month. This is a drop of N280.948 billion from the N954.085bn they shared in July.
The July allocation itself was up by N151.678bn, compared to the N802bn they shared in June.
According to the Federation Account Allocation Committee (FAAC), the August revenue of N673.137bn comprised Gross Statutory Revenue of N437.871bn, Value Added Tax (VAT) of N215.266bn, and augmentation of Non-Oil Excess Revenue of N20bn.
Of the sum, the federal government received N259.641bn, the 36 states got N222.949bn while the LGCs got N164.247bn. The oil-producing states received N26.301bn as derivation (13% of mineral revenue).
The communiqué issued by FAAC after its meeting showed that the gross revenue from VAT was N215.266bn, a rise above the July figure. From this, the federal government got N32.290bn, the states received N107.633bn and the LGCs got N75.343bn.
The gross statutory revenue of N437.871bn was distributed with the federal government getting N216.815bn. While the states got N109.972bn, LGCs got N84.783bn, and oil derivation was N26.301bn.
From a N20bn augmentation of non-oil excess revenue, the federal government received N10.536bn, states got N5.344bn and LGCs received N4.120bn.
The communiqué further revealed that VAT, Import and Excise Duties recorded significant increases, while Companies Income Tax (CIT), Petroleum Profit Tax (PPT), Oil and Gas Royalties decreased considerably.
The balance in the Excess Crude Account (ECA), as at 23rd September 2022 remained the $470,599.54 it was in July revenue period, after dropping from $35.37 million in May to $376,655 in June.
