In a major fiscal development, the Federation Account Allocation Committee (FAAC) has distributed N1.127 trillion to federal, state, and local governments in Nigeria. This allocation, drawn from the N1.674 trillion generated in December, represents a significant financial boost for the various tiers of government.
The FAAC meeting in January 2024, chaired by Accountant-General of the Federation Mrs. Oluwatoyin Madein, saw the Federal Government receive N383.872 billion, states N396.693 billion, local councils N288.928 billion, and oil-producing states N57.915 billion as their share of the 13% derivation. Additionally, N62.254 billion was allocated for the cost of collection, and N484.568 billion was earmarked for transfers, intervention, and refunds.
December 2023 witnessed a substantial increase in Gross Value Added Tax (VAT) revenue, amounting to N492.506 billion, a significant rise from the N360.455 billion distributed in the previous month. After deducting N19.700 billion for collection costs and N14.184 billion for transfers and other expenses, the remaining N458.622 billion was divided among the federal, state, and local governments.
The Gross Statutory Revenue of N875.382 billion for the month, though slightly lower than November’s figures, was also shared among the three government tiers. The Federal Government received N173.729 billion, states N88.118 billion, local councils N67.935 billion, and oil-producing states N33.406 billion from this pool.
Electronic Money Transfer Levy (EMTL) contributions further supplemented these revenues. The Federal Government received N2.678 billion, states N8.928 billion, and local councils N6.246 billion from the N18.599 billion EMTL revenue.
The distribution also included N287.743 billion from exchange differences, benefiting the Federal Government, states, local councils, and oil-producing states.
The revenue sources, including Company Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), VAT, and EMTL, showed significant increases. However, there was a notable decrease in Oil and Gas Royalties, while Customs External Tariff levies (CET) and Import Duty saw marginal declines.
The Excess Crude Account (ECA) balance as of January 23, 2024, stands at $473,754.57, reflecting the ongoing financial management and revenue allocation in Nigeria.
