Nigeria’s revenue increased by N181.82bn in November — FAAC

By Matthew Denis

For the month of November, Nigeria’s revenue increased by a whooping N181.82 billion, despite forex and inflationary pressures.

The Federation Account Allocation Committee (FAAC), at its Meeting chaired by the Honourable Minister of Finance and Co-ordinating Minister of the Economy, Wale Edun, shared a total sum of N1,088.783 trillion to the three tiers of government as Federation Allocation for the month of November, 2023 from a gross total of N1, 620.335 trillion.

From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference, the Federal Government received N402.867 billion, the States received N351.697 billion, the Local Government Councils got N258.810 billion, while the Oil Producing States received N75.410 billion as Derivation, (13% of Mineral Revenue).

The comminique also disclosed that the sum of N60.960 billion was given for cost of collection, and N470.592 billion allocated for Transfers Intervention and Refunds.

The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for November 2023, was N360.455 billion, which was an increase from the N347.343 billion distributed in the preceding month, resulting in an increase of N13.112 billion.

From that amount, the sum of N14.418 billion was allocated for Cost of Collection and the sum of N10.381 billion given for Transfers, Intervention and Refunds. The remaining sum of N335.656 billion was distributed  to the three tiers of government of which the Federal Government got N50.348 billion, the States received N167.828 billion, Local Government Councils got N117.480 billion.

Accordingly, the Gross Statutory Revenue of N882.561 billion  received in the month  was higher than the sum of N660.090 billion received in the previous month of October, 2023 by N222.470 billion. From that amount, the sum of N46.044 billion was allocated for Cost of Collection and a total sum of N460.211 billion for Transfers, Intervention and Refunds. The remaining  balance of  N376.306 billion was distributed as follows to the three tiers of government: Federal Government was allocated the sum of N174.908 billion, States got N88.716  billion, LGCs got N68.396 billion, and Oil Derivation (13% Mineral Revenue) got N44.286 billion.

Also, the sum of N12.450 billion from  Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N1.793 billion, States got N5.976 billion, Local Government Councils received N4.183 billion, while N0.498 billion was allocated for Cost of Collection.

The Communique disclosed  N364.869 billion from Exchange Difference, which was shared as follows: Federal Government received N175.817 billion, the States got N89.177 billion, the sum of N68.751 billion allocated to Local Government Councils, and N31.124 billion given  for Derivation (13% of Mineral Revenue).

Company Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), and Oil and Gas Royalties increased considerably, while Customs External Tariff levies (CET), Electronic Money Transfer Levy (EMTL) and Import Duty recorded decreases.

According to the Communique, the total revenue distributable for the current month of November 2023, was drawn from Statutory Revenue of N376.306 billion, Value Added Tax (VAT) of N335.656 billion,  N11.952 billion from Electronic Money Transfer Levy (EMTL), and  N364.869 billion from Exchange Difference,  bringing the total distributable amount for the month to N1,088.783 trillion.

The balance in the Excess Crude Account (ECA) as at December 15, 2023 stands at $473,754.57.

In his opening remarks at the meeting Wale Edun, the Honourable Minister of Finance and Co-ordinating Minister of the Economy, said the President Bola Ahmed Tinubu led administration was committed to achieve rapid and sustained economic growth in the country. He added that the Gross Domestic Growth (GDP) per Capita in Nigeria was increasing and getting many people out of poverty.

Edun commended the Federation Account Allocation Committee members for their support and cooperation within the year, noting that, “It is a team work and a joint effort.”

He also appreciated the government and people of Delta State for successfully hosting the 2023 Retreat of the Federation Account Allocation Committee Members.