August 11, 2023/Coronation Research
The latest gross monthly distribution by the Federation Account Allocation Committee (FAAC) to the three tiers of government and public agencies amounted to N907.05bn in July ’23 (from June revenue).
This shows an increase of 15.4% or N120.9bn from the previous payout, and it can be partly attributed to the increase in companies’ income tax (CIT), import and excise duties, value-added tax (VAT), oil and gas royalties.
There was also a significant boost given the recent increase in the exchange rate differential. However, petroleum profit tax (PPT) and electronic money transfer levy (EMTL) declined significantly. Based on channel checks, we understand that the distributable revenue for June ’23 was estimated at N1.9trn. However, c.N1trn was saved to mitigate the impact of increased money supply in an already heightened inflationary environment.
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