MON, 02 MAY, 2022-theGBJournal | The amount disbursed by the Federation Accounts Allocation Committee (FAAC) to the three tiers of government in April (based on March 2022 revenue) increased by 22.9% m/m or N135.02 billion to N725.57 billion (March 2022: N590.55 billion).
We highlight that the increased pay-out was due to a 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 38.2% or N277.10 billion (March 2022: N236.18 billion), and State Governments received N227.29 billion (March 2022: N190.01 billion), while the Local Governments received N167.91 billion (March 2022: N140.61 billion).
We maintain our expectations that actual oil revenue will 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 given our expectations of sustained positive readings in GDP.
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.
Twitter-@theGBJournal|Facebook-The Government and Business Journal|email: gbj@govbusinessjournal.ng|govandbusinessj@gmail.com
