FAAC allocation increased by N310bn in November | Gross statutory revenue soared by 36.7%

The federation account allocation committee (FAAC) says it shared N1.72 trillion among the three tiers of government in November 2024.

The amount shared represents an increase of N310 billion compared to the N1.41 trillion shared in October.

In a statement on Friday, the ministry of finance said the FAAC announced the disbursements at its December meeting in Abuja, chaired by Wale Edun, minister of finance.

FAAC said the gross total was N3.14 trillion while the distributable amount was N1.72 trillion.

The committee said from the distributable amount inclusive of gross statutory revenue, value-added tax (VAT), electronic money transfer levy (EMTL), and exchange difference (ED), the federal government received N581.85 billion, states received N549.79 billion, and the local governments got N402.55 billion.

FAAC added that the oil-producing states received N193.29 billion as derivation, (13 percent of mineral revenue).

It added that the sum of N103.3 billion was given for the cost of collection, while N1.31 trillion was allocated for transfer intervention and refunds.

For gross revenue, the VAT available for November 2024 was N628.9 billion as against N668.2 billion distributed in the preceding month, resulting in a decrease of N39.3 billion.

“From that amount, the sum of N25.1 billion was allocated for the cost of collection and the sum of N18.1 billion given for transfers, intervention and refunds,” the committee said.

“The remaining sum of N628.9 billion was distributed  to the three tiers of government, of which the federal government got N87.8 billion, states received N292.8 billion and local governments got N204.9 billion.”

GROSS STATUTORY RECORDS HIGHEST REVENUE 

Also, the gross statutory revenue of N1.82 trillion received for November was higher than the sum of N1.33 trillion received in the previous month by N490.3 billion or 36.7 percent.

From the stated amount, the sum of N77.5 billion was allocated for the cost of collection and a total sum of N1.2 trillion for transfers, intervention and refunds.

The remaining balance of N455.3 billion was distributed as follows: the federal government received N175.6 billion, states received N89.1 billion, and N68.7 billion was allocated to local governments.

FAAC said N121.8 billion was given as 13 percent derivation revenue to mineral-producing states.

In addition, the committee said N15 billion from EMTL was distributed to the federal government (N2.2 billion), states ( N7.5 billion), and local governments (N5.2 billion), “while N0.0627 Billion was allocated for Cost of Collection”.

From the exchange difference of N671.3 billion, the federal government received N316 billion, states got N160 billion, the sum of N123 billion was allocated to local governments, while N71.4 billion was given for derivation (13 percent of mineral revenue).

FAAC also said oil and gas royalty and CET levies recorded significant increases, while excise duty, VAT, import duty, petroleum profit tax (PPT), companies income tax (CIT), and EMTL decreased considerably.