The Federation Account Allocation Committee (FAAC) convened in February to distribute a substantial sum of N1.149 trillion in revenue, benefiting the federal government, states, and local government councils (LGCs) for the month of January.

Overview of Distributable Revenue

The total distributable revenue of N1,149 trillion included a statutory revenue of N463.079 billion and Value Added Tax (VAT) revenue of N391.787 billion.

Additionally, it comprised Electronic Money Transfer Levy (EMTL) revenue totaling N15.922 billion and Exchange Difference revenue of N279.028 billion.

Breakdown of Total Revenue

In January 2024, a total revenue of N2,068 trillion was available, with deductions including N78.412 billion for the cost of collection, N639.926 billion for transfers, interventions, and refunds, and savings of N200.000 billion.

Notable Increase in Gross Statutory Revenue

The gross statutory revenue of N1,151 trillion for January marked a significant increase compared to the N875.382 billion received in December 2023, surpassing it by N276.426 billion.

Changes in VAT Revenue

While the gross revenue available from VAT was N420.733 billion, it reflected a decrease from the N492.506 billion in December 2023, amounting to a difference of N71.773 billion.

Allocation to Government Entities

From the total distributable revenue, the federal government received N407.267 billion, state governments received N379.407 billion, and LGCs received N278.041 billion.

Additionally, N85.101 billion (13% of mineral revenue) was shared among states as derivation revenue.

Distributable Statutory Revenue

Out of the N463.079 billion distributable statutory revenue, the Federal Government received N216.757 billion, state governments received N109.942 billion, and LGCs received N84.761 billion.

Moreover, N51.619 billion (13% of mineral revenue) was distributed among benefiting states as derivation revenue.

VAT Revenue Allocation

From the N391.787 VAT revenue, the federal government received N58.768 billion, state governments received N195.894 billion, and LGCs received N137.125 billion.

Allocation of EMTL and Exchange Difference Revenue

The N15.922 billion Electronic Money Transfer Levy (EMTL) was shared, with the federal government receiving N2.388 billion, state governments receiving N7.961 billion, and LGCs receiving N5.573 billion.

Similarly, the federal government received N129.354 billion from the N279.028 billion Exchange Difference revenue, with state governments and LGCs receiving N65.610 billion and N50.582 billion, respectively.

Derivation Revenue

A sum of N33.482 billion (13% of mineral revenue) was allocated to benefiting states as derivation revenue.

Changes in Revenue Sources

In January, there were notable increases in Companies Income Tax (CIT), Import Duty, Petroleum Profit Tax, and Oil and Gas Royalties. Conversely, VAT, Export Duty, EMTL, and CET Levies saw considerable decreases.

Excess Crude Account Balance

The communique reported a balance of 473.754 million dollars in the excess crude account.

Frequently Asked Questions (FAQs)

In Conclusion

The FAAC’s allocation of N1.149 trillion for January underscores the economic dynamics and financial management among the federal government, states, and local government councils.

The detailed breakdown provides transparency and insight into the distribution process, reflecting the nation’s fiscal health in the given period.

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