SAT 05 FEB, 2022-theGBJournal- The amount disbursed by the Federation Accounts Allocation Committee (FAAC) to the three tiers of government in January (based on December 2021 revenue) increased by 3.5% m/m or N23.87 billion to NGN699.82 billion (December 2021: N675.95 billion).
We understand that the increased pay-out was due to the increased receipts from Company Income Tax (CIT) and Value Added Tax (VAT) in line with the improvement in domestic activities. Overall, the FGN received 39.9% or N279.46 billion (December 2021: N261.44 billion), State Governments received N256.48 billion (December 2021: NGN259.05 billion), while the Local Governments received N163.88 billion (December 2021: NGN155.46 billion). We expect actual oil revenue to remain below the FGN’s budget as low crude oil production continues to limit the gains from the rally in oil prices. However, we expect the non-oil revenue to support the aggregate revenue in line with the improvement in economic activities.
Accordingly, we expect the amount to be shared by the tiers of government to remain stable at current levels (N650.00 billion to N750.00 billion) over the medium term.
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