FAAC Convenes in Abuja to Distribute Record N1.959 Trillion Revenue for July

The Federation Account Allocation Committee (FAAC) is set to convene today in Abuja, Nigeria’s capital city, to allocate what could be the highest revenue in the nation’s history among the federal, state, and local governments.

Reports obtained by Naija News reveal that the three tiers of government will share a staggering sum of N1.959 trillion in July 2023 based on the established sharing metrics. This allocation figure is unprecedented and significantly surpasses the N786.161 billion shared in June and the N655.93 billion shared in May.

Notably, revenue allocations are typically shared from the preceding month’s revenue, meaning June’s revenue will be distributed in July.

According to a report monitored by TheCable, the bulk of the federally collected revenues come from statutory collections, totaling N1.7 trillion, followed by N293 billion from VAT and N12 billion from electronic money transfer charges.

While it remains uncertain whether there has been any higher monthly revenue in Nigeria’s history, TheCableIndex data team’s preliminary analysis suggests that the depreciation of the naira’s official exchange rate might have contributed to the apparent surge in revenue.

FAAC had previously adopted an exchange rate of N436.38/$ for the forex component of federally-collected revenues for June 2023, but it has now increased to at least N750/$.

The exact exchange rate used for the July distribution is yet to be confirmed.

FAAC comprises the minister of finance as chairman, all state commissioners of finance, state accountants-general, the accountant-general of the federation, and the permanent secretary of the federal ministry of finance.

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