New Telegraph

February 27, 2024

FAAC: Increase in VAT boosts October allocation to N736.782bn

Increase in Value Added Tax (VAT) collection in the sum of N229.041billion in October has raised the amount available for sharing to the three tiers of governments, federal states and local government councils to N736.782 billion. The amount was approved at the end of Fed-eration Account Allocation Committee (FAAC) meeting, which held in Abuja, according to a statement issued by Henshaw Ogubike, Director (Information, Press and Public Relations) at the Office of the Accountant General of the Federation.

The amount shared comprised statutory revenue of N417.724 billion, distributable Value Added Tax (VAT) of N213.283 billion, Exchange Gain revenue of N5.775 billion and N100.000 billion Augmentation from Non-oil Revenue. Deductions for cost of collection was N33.555 billion and total deductions for transfers, savings and refunds was N186.749 billion. Of total distributable revenue of N736.782 billion, the Federal Government received N293.955 billion, state received N239.512 billion while local government councils received N177.086 billion.

A sum of N26.228 billion was shared to the relevant states as 13 per cent derivation revenue. Gross statutory revenue of N622.270 billion was received for the month of October 2022. This was lower than the sum of N825.710 billion received in the previous month by N203.440 billion. From the N417.724 billion distributable statutory revenue, the Federal Government received N206.576 billion, states received N104.778 billion while local government councils received N80.779 billion. A sum of N25.591 billion was shared to the relevant states as 13 per cent derivation revenue.

“For the month of October 2022, the gross revenue available from the Value Added Tax (VAT) was N229.041billion. This was higher than the N203.960 billion available in the month of September 2022 by N25.081billion,” the statement added. Of VAT realised, the Federal Government got N31.992 billion, states received N106.642 billion and local government councils received N74.649 billion from the N213.283 billion distributable Value Added Tax (VAT) revenue. The N5.775 billion from the exchange gain revenue was distributed as follows: Federal Government received N2.707 billion, the State Governments received N1.373 billion, local government councils received N1.058 billion and the relevant states received N0.637 billion as 13 per cent derivation revenue.

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