FG, States, LG Share N750bn January Allocation
The N750.174 billion Federation Allocation for January 2023 has been split amongst the federal, state, and municipal governments.
The Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levies (EMTL), Augmentation from Non-Mineral Revenue, and an additional sum of N15.000 billion from Savings were all included in the total, according to the information provided by the Federation Account Allocation Committee (FAAC) following its meeting.
The FAAC reported that the Federal Government received N277.334 billion, State Governments received N244.975 billion, and Local Government Councils received N180.135 billion at the conclusion of its most recent meeting on Monday in Abuja. Similarly, N32.730 billion (13% of mineral revenue) was paid to the states that produce minerals.
The amount is lower by N240.02 billion than the N990.19 billion provided in December.
Also, it was stated that the value added tax’s gross revenue for January 2023 was N250.01 billion, down from the N250.51 billion distributed in the preceding month, a loss of N0.503 billion.
At its meeting, the Federation Account Allocation Committee (FAAC) distributed N750.174 billion to the three levels of government as the Federation Allocation for January 2023.
The Federal Government received N277.334 billion from this amount, while the States received N244.975 billion, the Local Government Councils received N180.135 billion, and the Mineral Producing States received N32.730 billion as Derivation, or 13% of Mineral Revenue. This amount also includes Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levies (EMTL), Augmentation from Non-Mineral Revenue, and an additional sum of N15.000 billion from Savings.
At the conclusion of the meeting, the Committee stated that the additional N15.000 billion in savings would be distributed among the three levels of government.
The Federation Account Allocation Committee (FAAC) released a communiqué at the conclusion of the meeting that stated that the Gross Revenue from Value Added Tax (VAT) available for the month of January 2023 was N250.009 billion, as opposed to N250.512 billion distributed in the preceding month, resulting in a decrease of N0.503 billion, and that N10.000 billion of this amount was allocated to Cost of Collection, while N7.200 billion was given to transfers. The remaining N232.809 billion was divided as follows: N34.921 billion went to the federal government, N116.405 billion to the states, and N81.483 billion to local government councils.
As a result, the N653.703 billion in gross statutory revenue collected for the month was N482.479 billion less than the N1136.183 billion in gross statutory revenue collected in the preceding month. The cost of collection was deducted in the amount of N23.494 billion, and transfers, savings, and refunds received a total of N241.091 billion. The remaining balance of N389.118 billion was divided as follows: N189.745 billion went to the federal government, N95.227 billion to the states, N73.416 billion to LGCs, and N32.730 billion went to derivation (13% to mineral producing states).
Additionally, N13.799 billion from the Electronic Money Transfer Levies (EMTL) was divided among the three (3) levels of government as follows: N1.987 billion went to the Federal Government, N6.624 billion to the States, N4.636 billion to Local Government Councils, and N0.552 billion was set aside for cost of collection.
Moreover stated in the communiqué was the addition of N100 billion in non-mineral revenue, which was divided as follows: the federal government received N52.680 billion, the states received N26.720 billion, and local government councils received N20.600 billion.
Oil and Gas Royalties, Businesses Income Tax, Petroleum Profit Tax, and EMTL all saw significant declines. Value Added Tax (VAT) saw a little decline. Nonetheless, albeit slightly, import and excise taxes went up.
