FG, States, LGs share N676bn for July

• Minister allays fear over FG borrowings, says N25.7tr debt not worrisome

The Federation Accounts Allocation Committee (FAAC) has distributed the sum of N676.407 billion for July 2020 federation account revenue to the federal, states and local government councils and relevant agencies in the country.

This was revealed after the monthly FAAC meeting for August 2020 held virtually on Thursday and chaired by the Permanent Secretary, Federal Ministry of Finance, Mahmud Isa-Dutse.

He disclosed that a gross statutory revenue of N543.79 billion was received for July 2020 which was N19.26 billion higher than the N524.53 billion said to have been received for June.

The gross revenue generated through Value Added Tax (VAT) came to N132.62 billion compared to the N128.83 billion recorded in June.

A communiqué released by FAAC showed the Federal Government received N273.19 billion, state governments N190.85 billion, and local government councils N142.76 billion out of the total distributable revenue of N674.407 billion.

The oil producing states were allocated N42.85 billion as 13% derivation revenue just as two sub-heads namely, cost of collection and transfers to relevant agencies collectively had allocation of N26.76 billion.

From the gross statutory revenue of N543.79 billion, the Federal Government received N254.69 billion, the states received N129.18 billion while the local government councils received N99.59 billion.

N17.47 billion was the collective total for cost of revenue collection by revenue agencies.

Out of the N132.62 billion VAT revenue, the Federal Government received N18.5 billion, state governments N61.67 billion and local government councils N43.17 billion. The cost of collection and transfers collectively had a revenue allocation of N9.28 billion.

According to the communiqué, oil and gas royalty, petroleum profit tax and VAT rose significantly while companies’ income tax, Import and excise duty witnessed declines.

The Excess Crude Account balance was $72.408 million as of 19th August, $1 million higher than the $72.407 recorded in June.