FG, States, LGs Share N3.007tn July FAAC Revenue

The Federal Government, 36 states and 774 local government councils have shared N3.007 trillion as revenue for July.

The allocation was approved at the monthly meeting of the Federation Account Allocation Committee (FAAC) held in Owerri, Imo State, on Tuesday.

The meeting was held on the sidelines of the National Council of Federation and Economic Development (NACOFED).

According to the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, the July distribution followed a significant increase in gross statutory revenue.

Mokwa said gross statutory revenue rose to N4.359 trillion in July, representing an increase of N658.087 billion, or 17.8 per cent, from the N3.700 trillion recorded in June.

He attributed the improvement to stronger receipts from Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, excise duty and gas-flaring penalties.

However, gross Value Added Tax revenue declined slightly to N793.968 billion in July, compared with N799.746 billion in June.

The figure represents a decrease of N5.778 billion, or 0.7 per cent.

FAAC said the increase in statutory revenue was partly offset by declines in VAT, import duty, Common External Tariff levies, gas-flaring fees and miscellaneous oil revenue.

The committee said it would continue to work with revenue-generating agencies to close collection gaps and improve remittance discipline.

It also stressed the need for transparent and timely remittance of collectible revenues into the Federation Account.

FAAC further called for continued efforts to broaden Nigeria’s revenue base beyond oil through tax reforms and increased mobilisation of non-oil revenue.

The committee highlighted the importance of stronger collaboration between the Federal and state governments through NACOFED on fiscal policy, revenue sharing and broader economic development priorities.

Mokwa identified solid minerals and other non-oil royalty streams as areas with significant potential to boost Federation revenue.

He also urged Ministries, Departments and Agencies to maintain discipline in revenue collection and remittance.