Wale Edun Orders Discipline In Money Supply As FAAC Shares N966bn In July

The Federation Account Allocation Committee (FAAC) has disclosed that it shared the sum of N966.11 billion among the three tiers of government in July 2023 as Wale Edun calls for discipline in revenue supply.

BrandNewsDay reports that the Director, of Press and Public Relations at the Ministry of Finance, Stephen Kilebi made this disclosure on behalf of the committee in a communique issued after its latest meeting in Abuja on Tuesday, 22 August, 2023.

The meeting was headed by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun.

The July disbursement is higher than the amount (N907.05 billion) shared in June by N59.06 billion (6.5 per cent).

The total amount shared includes funds from gross statutory revenue, value-added tax (VAT), electronic money transfer levies (EMTL), and exchange rate difference revenue, the committee included.

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The communiqué read, “The N966.11bn total distributable revenue comprised distributable statutory revenue of N397.42bn, distributable Value Added Tax revenue of N271.95bn, Electronic Money Transfer Levy revenue of N12.84bn and Exchange Difference revenue of N283.904bn.”

According to FAAC, from the total distributable revenue of N966.11 billion, the federal government received N374.49 billion, the state received N310.67 billion and the local governments were given N229.41 billion.

The committee noted that a total sum of N51.55 billion was shared with the relevant states as 13 per cent derivation revenue.

The panel added that gross statutory revenue of N1.150 trillion was received for the month of July 2023, which was lower than the sum of N1.152 trillion received in the month of June 2023 by N2.5 trillion.

The Committee stated that from the N397.42 billion distributable statutory revenue, the federal government got N190.49 billion, the states received N96.62 billion, the local governments were allocated N74.49 billion, while N35.82 billion was shared with the relevant states as 13 per cent derivation revenue.

The committee also said the gross revenue from VAT was N298.79 billion — higher than the N293.41 billion recorded in the month of June 2023 by N5.38 billion.

From the VAT revenue, FAAC said, N40.79 billion was given to the federal government; N135.97 billion was allocated to the states, while the local governments got N95.18 billion.

In addition, out of the N12.84 billion EMTL, the federal government received N1.93 billion, the states received N6.42 billion and the local governments were given N4.49 billion.

The communique further disclosed that from the N283.9 billion exchange difference revenue, the federal government received N141.28 billion, and the states got N71.66 billion.

While N55.25 billion was allocated to the local governments, N15.72 billion was shared with the relevant states as 13 per cent of mineral revenue.

In the communiqué, FAAC disclosed said import and excise duties and EMTL increased considerably, while VAT recorded a marginal increase.

In other news, the petroleum profit tax, companies income tax (CIT), and oil and gas royalties recorded significant decreases.

FAAC noted that N62.42 billion was deducted as the cost of collection, while N717.96 billion was deducted for savings, transfers, refunds, and tax credit cancellation.

As of August 22, 2023, the balance in the excess crude account was maintained at $473,754.57.

Meanwhile, in the statement by Kilebi, the Finance Minister “advised that there should be discipline in money supply to control inflation in the nation’s economy.”

Edun said there was a need for the government to mobilise resources to deliver on its mandate to increase employment and reduce poverty.