December: Fed Govt, states, LGs share N1.13trn FAAC allocation

The Federation Account Allocation Committee reports that in December 2023, the Federal Government, States, and Local Government Councils received a total of N1.13 trillion in earnings.

This is N500 billion higher than the N1.08 trillion shared with each state in November.

The FAAC, in a communique issued following its January 2024 meeting, chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein, stated that the N1.13 trillion total distributable revenue included distributable statutory revenue of N363.188 billion, distributable Value Added Tax revenue of N458.622 billion, Electronic Money Transfer Levy revenue of N17.855 billion, and Exchange Difference revenue of N287.743 billion.

Madein, who was quoted in a statement by Bawa Mokwa, Director of Press and Public Relations, on Tuesday, also stated that a total of N57.92 billion (13% of mineral revenue) was divided with the beneficiary states as derivation revenue.

The statement stated that entire revenue of N1,674.230 billion was available in December 2023.

Remember that the present administration’s withdrawal of subsidies and unification of the country’s exchange rate resulted in increased revenue for the Federation Account.

The statement read,

“The N1.13trn total distributable revenue comprised distributable statutory revenue of N363.188 billion, distributable Value Added Tax revenue of N458.622 billion, Electronic Money Transfer Levy revenue of N17.855 billion and Exchange Difference revenue of N287.743 billion.

“Total deductions for cost of collection was N62.254 billion; total transfers, interventions, and refunds was N484.568 billion.

“Gross statutory revenue of N875.382 billion was received for the month of December 2023. This was lower than the N882.560 billion received in the month of November 2023 by N 7.178 billion.”

The statement added that the gross revenue available from the Value Added Tax in December 2023 was N492.506 billion which was N132.1bn higher than the N360.455 billion available in the month of November 2023.

The communique stated that from the N1,127.408 billion total distributable revenue, the Federal Government received a total of N383.872 billion, the State Governments received N396.693 billion and the Local Government Councils received N288.928 billion.

It added,

“A total sum of N57.915 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.

“From the N363.188 billion distributable statutory revenue, the Federal Government received N173.729 billion, the State Governments received N88.118 billion and the Local Government Councils received N67.935 billion. The sum of N33.406 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

“The Federal Government received N68.793 billion, the State Governments received N229.311 billion and the Local Government Councils received N160.518 billion from the N458.622 billion distributable Value Added Tax revenue.

“The N17.855 billion Electronic Money Transfer Levy was shared as follows: the Federal Government received N2.678 billion, the State Governments received N8.928 billion and the Local Government Councils received N6.249 billion.

“The Federal Government received N138.672 billion from the N 287.743 billion Exchange Difference revenue.

The State Governments received N70.336 billion, and the Local Government Councils received N54.226 billion. The sum of N24.509 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.”

However, FAAC stated,

“In the month of December 2023, Companies Income Tax, Excise Duty, Petroleum Profit Tax, Value Added Tax, and Electronic Money Transfer Levy increased significantly, while Oil and Gas Royalties decreased substantially. Import Duty and CET Levies decreased marginally.

“The balance in the ECA was $473,754.57, the statement concluded.

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