FAAC allocates N1.13trn to FG, States, and LGs in December 2023
…As gross statutory revenue drops to N875.382bn
…Mining sector contributes N2.8trn to Nigeria’s GDP in Q1
…FG receives N138.672bn from exchange difference revenue
By Sodiq Adelakun
The Federation Account Allocation Committee (FAAC) announced that it distributed a total sum of N1.13 trillion in earnings in December 2023 to the Federal Government, States, and Local Government Councils.
This amount is N500 billion higher than the N1.08 trillion shared in November. The FAAC, chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein, disclosed this information in a communique after its January 2024 meeting.
The N1.13 trillion total distributable revenue consists of distributable statutory revenue of N363.188 billion, distributable Value Added Tax (VAT) revenue of N458.622 billion, Electronic Money Transfer Levy revenue of N17.855 billion, and Exchange Difference revenue of N287.743 billion.
Additionally, N57.92 billion, which is 13 percent of mineral revenue, was shared with the benefiting States as derivation revenue.
According to the communique, a total revenue of N1,674.230 billion was available in December 2023. This increase in revenue can be attributed to the removal of subsidies and the unification of the country’s exchange rate by the current administration.
The statement further explained that the N1.13 trillion distributable revenue included deductions for the cost of collection amounting to N62.254 billion, as well as transfers, interventions, and refunds totaling N484.568 billion.In terms of gross statutory revenue, N875.382 billion was received in December 2023, which is slightly lower than the N882.560 billion received in November 2023 by N7.178 billion.
Recall that the federation account began to enjoy more revenue following the removal of subsidies and unification of the country’s exchange rate by the current administration.
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 percent 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 percent 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 percent 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.
