FAAC distributes ₦1.127tn December revenue to Federal, State, Local Governments

The disclosure was made in a communique issued following the FAAC’s January meeting, chaired by the Accountant General of the Federation, Dr Oluwatoyin Madein.

The breakdown of the ₦1.127 trillion total distributable revenue includes ₦363.188 billion as distributable statutory revenue, ₦458.622 billion as distributable Value Added Tax (VAT) revenue, and ₦17.855 billion as Electronic Money Transfer Levy (EMTL) revenue. Additionally, Exchange Difference revenue accounted for ₦287.743 billion.

The communique revealed that a total revenue of ₦1.674 billion was available in December 2023. After deducting ₦62.254 billion for the cost of collection and allocating ₦484.568 billion for transfers, interventions, and refunds, the gross statutory revenue of ₦875.382 billion was received. Notably, this amount was slightly lower than the ₦882.56 billion received in November 2023 by ₦7.178 billion.

Furthermore, the gross revenue available from VAT witnessed an increase, standing at ₦492.506 billion in December, compared to ₦360.455 billion in November – a rise of ₦132.051 billion.

From the ₦1.127 trillion total distributable revenue, the federal government received ₦383.872 billion, the state governments received ₦396.693 billion, and the LGCs received ₦288.928 billion. Additionally, ₦57.915 billion, constituting 13 percent of mineral revenue, was shared among the benefiting states as derivation revenue.

Breaking down the distributable statutory revenue, the federal government received ₦173.729 billion, the state governments received ₦88.118 billion, and the LGCs received N₦67.935 billion. Moreover, ₦33.406 billion, also 13 percent of mineral revenue, was allocated to the benefiting states as derivation revenue.

In the case of distributable VAT revenue, the federal government received ₦68.793 billion, the state governments received ₦229.311 billion, and the LGCs received ₦160.518 billion.

From the N17.855 billion EMTL revenue, the federal government received ₦2.678 billion, the state governments received N8.928 billion, and the LGCs received B6.249 billion.

The communique highlighted significant increases in Companies Income Tax (CIT), excise duty, Petroleum Profit Tax (PPT), VAT, and EMTL for December 2023. However, oil and gas royalties witnessed a substantial decrease. Import duty and CET levies decreased marginally.

The report concluded by noting that the balance in the Excess Crude Account (ECA) was 473.754 million dollars as of December 2023.