Another Decline in the FAAC Payout; Amount to N547bn in June 2020


Monday, June 22 , 2020 / 08:49 AM / by FBNQuest Research / Header Image Credit: FBNQuest


The gross monthly payout by the Federation Account Allocation Committee (FAAC) to the three tiers of government amounted to N547bn (US$1.42bn) in June (from May revenue). This was a decline of N59bn on the previous month's payment. From the sparse coverage in the local media last week we learnt that that receipts from petroleum profit tax, VAT (N104bn vs N94bn) and import duty were higher on the month, and those from companies' income tax, oil royalties and excise duty all lower. State governments received a total of N189bn including the 13% derivation formula for those classified as oil producers.

Proshare Nigeria Pvt. Ltd.


The previous total distribution included, we assume, a sizeable exchange-rate gain on the back of the CBN's adjustment to the official/preferential rate from N307 per US dollar to N360 on 20 March.


While the previous total was higher, the statutory allocation of N370bn has been bettered by the latest N414bn. This may reflect the impact of the easing of lockdown in the principal urban centres with effect from the first week of May. 


The next two distributions are likely to be lower. Nigerian crude is generally sold three months forwards, and the price in March and April was at its low point in this cycle. One prominent state governor has suggested that the distribution from June revenue in July may not reach N200bn.


Revenue allocations (gross) by the FAAC (N bn)


Proshare Nigeria Pvt. Ltd.


Sources: Office of the accountant-general of the federation (OAGF); local media; CBN; FBNQuest Capital Research


The president is said to have authorized the withdrawal of US$150m from the stabilization fund managed by the Nigerian Sovereign Investment Authority to supplement the next payout. The stabilization fund, one of three managed by the authority, is designed to respond to shocks such as that created by Covid-19.


Proshare Nigeria Pvt. Ltd.

Related Links

  1. FAAC Disburses N780.93bn in April 2020 - NBS
  2. FAAC Disburses N581.57bn in March 2020 - NBS
  3. FAAC Disburses N647.35bn in February 2020 - NBS
  4. FAAC Disburses N716.30bn in January 2020 - NBS
  5. FAAC Disburses N2.93trn to FG in 2019 - NBS
  6. FAAC Disburses N650.83bn in December 2019 - NBS
  7. FAAC Disburses N702.02bn in November 2019 - NBS
  8. FAAC Disburses N693.52bn in October 2019 - NBS
  9. FAAC Disburses N740.87bn in September 2019 - NBS


Proshare Nigeria Pvt. Ltd.

Related News

  1. A Sharp Fall in the FAAC Payout; May Payment Amount to N606bn
  2. A Surprising Boost to the FAAC Payout; April Payment Amount to N781bn
  3. Ahead of Tomorrow on WebTV: Discussions on Post COVID- 19; Attracting FDIs Into Nigeria
  4. Ahead of Tomorrow on WebTV: Discussions on Post COVID-19; How States Can Reposition Their Economies
  5. Making Hay While the Sun Has Set- LBS Executive Breakfast Session - May 2020
  6. Macroeconomic Outlook Update: COVID-19, Global Oil Price and the Nigerian Economy
  7. Nigerian Financial Institutions Remain Resilient To Economic Disruptions
  8. Nigeria Macroeconomic Markets Report for April 2020 - Inflation Continued Its Relentless Rise
  9. NOVA Monthly Economic Insight: Liquidity Pressure to Moderate Impact of Higher Borrowings
  10. Total Household Expenditure on Food and Non-food Was Put At N40.21bn in 2019 - NBS
  11. Ahead of Tomorrow on WebTV: Discussions on COVID-19; Driving Inclusive Economic Growth in Nigeria
  12. COVID-19 Pandemic and The Black Swan Metaphor - OpEd By Adefeko

Proshare Nigeria Pvt. Ltd.
Related News