Federal Government, States and Local Government Councils are set to share N1.959 Trillion from Federation Account Allocation Committee (FAAC) for July 2023, MoneyCentral reports.
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.
The Federation Account Allocation Committee (FAAC) will meet in Abuja on Wednesday to allocate the revenue to the tiers of government; Federal, States and Local Government Council based on the sharing formula.
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.
A snap analysis by TheCableIndex data team suggests 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.
Source: TheCable