MON 03 JAN, 2022-theGBJournal -The amount disbursed by the Federation Accounts Allocation Committee (FAAC) to the three tiers of government in December (based on November revenue) increased by 0.6% m/m or c. N4.00 billion to N676.00 billion (November: N671.91 billion).
It is understood that the increased pay-out was due to significant month-on-month revenue increase across Petroleum Profit Tax (PPT), Value Added Tax (VAT), Companies’ Income Tax, and Oil & Gas royalties.
Overall, the FGN received 38.7% or N261.00 billion (November: N284.29 billion), State Governments received N259.00 billion (November: N231.34 billion), while the Local Governments received N155.00 billion (November: N156.28 billion).
We maintain our expectations that the amount to be shared by the tiers of government would remain stable at current levels (N650.00 billion to N750.00 billion) over the medium term.
Our forecast is hinged on the impact of sustained improvement in economic activities and rally in oil prices, which would partly offset the decline in crude oil production volume.
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