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FG, states, LGAs share N786bn May revenue

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The Federation Account Allocation Committee says it shared N786.16bn among the three tiers of government in May 2023.

The figure represents an increase of N130.23bn compared to the N655.93bn shared in April 2023, and it is the highest this year and the first increase following a constant decline since January.

FAAC disclosed this in a communiqué issued at the end of its latest meeting in Abuja on Thursday.

The meeting was chaired by the new Accountant General of the Federation, Dr Oluwatoyin Madein.

The total amount includes gross statutory revenue, Value Added Tax, Augmentations from Forex and Non-oil Mineral Revenue, and electronic money transfer levies.

The communique read, “The N786.16bn total distributable revenue comprised distributable statutory revenue of N519.55bn, distributable Value Added Tax revenue of N251.61bn, Electronic Money Transfer Levy of N14.37bn, and Exchange Difference revenue of N0.64 bn.”

The Federal Government received N301.89bn, the states received N265.88bn, and the local government councils got N195.54bn, while the oil-producing states received N22.86bn as derivation (13 per cent of mineral revenue).

A breakdown showed that “Gross statutory revenue of N701.79bn was received for the month of May 2023. This was higher than the sum of N497.46bn received in the previous month by N204.324bn.”

It was noted that from the N519.55bn distributable statutory revenue, the Federal Government got N261.69bn, the State Governments received N132.73bn, and the Local Government Councils received N102.33bn. The sum of N22.8bn was shared to the relevant States as 13 per cent derivation revenue.

Also, “For the month of May 2023, the gross revenue available from the Value Added Tax was N270.2bn.  This was higher than the N217.74bn available in the month of April 2023 by N52.45bn.

“The Federal Government received N37.74bn, the State Governments received N125.80bn and the Local Government Councils received N88.06bn from the N251.61bn distributable Value Added Tax revenue.

“The N14.37bn Electronic Money Transfer Levy was shared as follows: the Federal Government received N2.16bn, the State Governments received N7.189bn and the Local Government Councils received N5.03bn.

“From the N0.64bn Exchange Difference revenue, the Federal Government received N0.31bn, the State Governments received N0.16bn, the Local Government Councils received N0.12bn and the sum of N0.06bn was shared to the relevant States as 13 per cent mineral revenue.”

The communiqué revealed that in May 2023, Petroleum Profit Tax, Companies

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Rising inflation and low economic growth in Nigeria will push a further 2.8 million people into poverty by 2023’s end, the World Bank has disclosed. This is based on a report titled, ‘Macro Poverty Outlook: Country-by-country Analysis and Projections for the Developing World,’ released recently. The Washington-based bank said, “By the end of 2023, the rise in inflation and low economic growth will have contributed to an increase of 2.8 million people in poverty (y-o-y), a 0.4 percentage points bump to 37.5 per cent of the population.” It noted that Nigeria’s high inflation reached a17 17-year high of 24.1 percent (y-o-y) in July 2023, partly reflecting surging food prices and the temporary impact of the removal of the fuel subsidy. It stated that a cumulative 725 basis points hike in the monetary policy rate since May 2022 has had little effect on reining in inflation due to clogged transmission channels, also weakened by direct credit allocation by the central bank, and the continued monetization of the fiscal deficit. The global bank further declared that federal fiscal deficit has risen to 63 per cent higher between January and May 2023 than in the same period in 2022, due to increasing interest payments, higher capital spending ahead of the elections, and the continuous large cost of the fuel subsidy. The impact of this is set to spike public debt to 45 per cent of GDP and keep debt service above total revenue in 2023. It said. “The fiscal financing need and the devaluation of the naira are expected to push the public debt to 45 per cent of GDP and keep the debt service above total revenues in 2023. “The current account balance (CAB) recorded a surplus of 2.2 per cent of GDP in Q1 2023, driven by lower imports and income outflows. However, the small CAB surpluses and capital flows since 2022 have been insufficient to increase foreign reserves, as oil export FX flows to CBN contracted, likely as a result of the direct crude sale-direct fuel purchase arrangements.” The Bretton Woods Institution further predicted that future economic growth in the country will depend on the continued implementation of macro-fiscal and inclusive structural reforms. It stated the current reforms of the government will boost economic growth to an average of 3.4 per cent in 2023-2025. It also expects inflation to begin to moderate by 2024. The World Bank added, “The share of Nigerians living below the international poverty line is expected to peak in 2024 at 38.8 per cent before beginning a gradual decline, as inflation cools down and economic growth picks up. Targeted measures, including cash transfers, could mitigate short-term adjustment costs to the poor and vulnerable and mitigate their risk of falling into intergenerational poverty traps.” Earlier in June, the bank disclosed that inflation pushed an estimated four million people into poverty between January and May 2023. Inflation has since risen to 27.33 per cent as of October 2023.

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