President Bola Tinubu has approved the establishment of the Infrastructure Support Fund (ISF) for the 36 States of the Federation as part of measures to cushion the effects of the petrol subsidy removal on the people.
The approval was disclosed at the monthly meeting of the Federation Account Allocation Committee (FAAC), on Thursday July 20, 2023, in Abuja.
The new Infrastructure Fund will enable the States to intervene and invest in the critical areas of Transportation, including farm-to-market road improvements; agriculture, encompassing livestock and ranching solutions; health, with a focus on basic healthcare; education, especially basic education; power and water resources, that will improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians.
The Committee also resolved to save a portion of the monthly distributable proceeds to minimize the impact of the increased revenues occasioned by the subsidy removal and exchange rate unification-on money supply, as well as inflation and the exchange rate.
Also, the Federation Account Allocation Committee (FAAC) has shared a N907.05 billion June Federation Account revenue to the Federal Government, states and Local Government Councils (LGCs)
This was disclosed in a communiqué issued at the end of the FAAC meeting for July on Thursday in Abuja.
The meeting was chaired by the Accountant General of the Federation, Dr Oluwatoyin Madein.
According to the communiqué, the N907.05 billion total distributable revenue comprised distributable statutory revenue of N301.5 billion, distributable Value Added Tax (VAT) revenue of N273.23 billion, and Electronic Money Transfer Levy (EMTL) revenue of N11.44 billion.
It also included Exchange Difference revenue of N320.89 billion.
“In June 2023, the total deductions for cost of collection was N73.235 billion and total deductions for savings, transfers and refunds was N979.078 million.
“The balance in the Excess Crude Account (ECA) was 473,754.57 dollars,” it stated.
The communiqué stated that from the total distributable revenue of N907.05 billion; the federal government received N345.56 billion, the state governments received N295.95 billion and the LGCs received N218.06 billion.
A total sum of N47.48 billion was shared to the relevant states as 13 per cent derivation revenue.
“Gross statutory revenue of N1.152 trillion was received for the month of June.
“This was higher than the sum of N701.787 billion received in the previous month by N451.134 billion.
“From the N301.501 billion distributable statutory revenue, the federal government received N146.710 billion, the state governments received N74.413 billion and the LGCs received N57.370 billion.
“The sum of N23.008 billion was shared to the relevant States as 13 per cent derivation revenue,” it said.
The communiqué further stated that the gross revenue available from VAT was N293.411 billion, adding that it was higher than the N270.197 billion available in the month of May by N23.214 billion.
It said that the federal government received N40.984 billion, the state governments received N136.613 billion and the LGCs received N95.63 billion from the N273.23 billion distributable VAT revenue.
“The N11.436 billion EMTL was shared as follows: the Federal Government received N1.715 billion, the State Governments received N5.718 billion and the LGCs received N4.003 billion.
“From the N320.892 billion Exchange Difference revenue, the Federal Government received N156.155 billion, the state governments received N79.204 billion, the LGCs received N61.063 billion.
“The sum of N24.470 billion was shared to the relevant States as 13 per cent mineral revenue,” it said.
It stated that Companies Income Tax (CIT), Import and Excise Duties, VAT, and Oil and Gas Royalties all increased significantly, while Petroleum Profit Tax and EMTL decreased considerably.
