Nigeria’s distributable revenue fell sharply in August, as gross statutory collections dropped by N1.508 trillion compared with the previous month, reducing the amount available for sharing among the Federal Government, states and local governments.
The Federation Account Allocation Committee (FAAC), at its meeting in Abuja, approved a total of N2.338 trillion for distribution to the three tiers of government for the month.
The distributable revenue comprised N1.565 trillion from statutory revenue and N773.233 billion from Value Added Tax (VAT).
According to the FAAC communiqué, gross statutory revenue fell to N2.850 trillion in August from N4.359 trillion recorded in July, representing a significant contraction in one of the federation’s major revenue sources.
Total gross revenue available during the month stood at N3.685 trillion. From the amount, N125.142 billion was deducted as the cost of collection, while N1.221 trillion went to transfers, refunds and savings.
Despite the decline in statutory revenue, VAT collections recorded an increase during the month.
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Gross VAT revenue rose to N834.843 billion in August from N793.968 billion in July, representing an increase of N40.875 billion.
The increase, however, was not enough to offset the sharp decline in statutory collections, resulting in lower overall revenue available for distribution.
From the final distributable revenue, the Federal Government received N804.897 billion, while state governments received N794.313 billion.
Local Government Councils received N555.142 billion.
An additional N184.388 billion was distributed to benefiting states as 13 per cent derivation revenue from mineral resources.
The decline in revenue was linked to mixed performances across the major revenue sources.
While Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), VAT, Customs and Excise-related revenues recorded increases, collections from Companies Income Tax (CIT), petroleum royalties, mineral royalties and Import Duty declined during the period.
The latest FAAC figures highlight the continued sensitivity of Nigeria’s shared revenues to fluctuations in key statutory revenue sources, particularly those linked to petroleum and taxation.
