BUSINESS:FAAC Meets In Abuja Today, To Share N1.959 Trillion Revenue In July

The Federation Account Allocation Committee (FAAC) has scheduled to meet in Nigeria’s capital city, Abuja, today to share what may be the highest revenue in history among the three tiers of government; federal, state and local.

Reports obtained by Naija News revealed that the three tiers of government would, based on the sharing metrics, share the sum of N1.959 trillion in July 2023.

The revenue allocation is observed to be a high figure and may be the highest of its kind in the country’s history. The reported figure nearly triples the N786.161 billion shared in June and more than triples the N655.93 billion in May

However, it could not be established yet if there had been any higher monthly revenue in the history of Nigeria.

A snap analysis by TheCableIndex data team suggests that the fall in the official exchange of the naira might have contributed to the seemingly unprecedented rise in revenue.

Naija News learnt that FAAC adopted N436.38/$ as the exchange rate for the calculation of the forex component of federally-collected revenues for June 2023, but this has now gone up to at least N750/$.

However, it could not be confirmed what exchange rate was used for July.

FAAC is made up of 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

Allocations are usually shared from the preceding month’s revenue — meaning June will be shared in July.

A report monitored by TheCable showed that statutory collections make up N1.7 trillion of the federally collected revenues, followed by N293 billion from VAT and N12 billion from electronic money transfer charges.