FAAC To Share N1.959tr Revenue To FG, States And LGA In July, Probably The Highest Ever

The Federation Account Allocation Committee (FAAC) will share N1.959 trillion to the three tiers of government in July 2023.

The Cable reports that this is the highest the government has ever shared, This is nearly triple the N786.161 billion shared in June and more than triple the N655.93 billion in May.

Allocations are usually shared from the preceding month’s revenue — meaning June will be shared in July. According to the report, the Federation Account Allocation Committee (FAAC) will meet in Abuja on Wednesday, July 19, to allocate the revenue to the tiers of government — federal, state and local — based on the sharing metrics.

Statutory collections make up N1.7 trillion of the federally collected revenues, followed by N293 billion from VAT and N12 billion from electronic money transfer charges. The report believes that the fall in the official exchange of the naira might have contributed to the seemingly unprecedented rise in revenue.

FAAC adopted N436.38/$ as exchange rate for the calculation of the forex component of federally-collected revenues for June 2023 but this has now gone up to at least N750/$.

FAAC is made up of the minister of finance as chairman, all state commissioners of finance, state accountants-general, the accountant-general of the federation and the permanent secretary of the federal ministry of finance.