FAAC allocation increased by N95bn in September | Gross statutory revenue fell by 14%

The federation account allocation committee (FAAC) says it shared N1.29 trillion among the three tiers of government in September 2024, noting that Nigeria’s gross statutory revenue declined by 14.5 percent.

The allocation, which was from a gross total of N2.298 trillion, represents an increase of N95 billion compared to the N1.203 trillion distributed in August.

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

FAAC said the N1.29 trillion distributable revenue comprised of gross statutory revenue, value-added tax (VAT), electronic money transfer levy (EMTL), exchange difference (ED) and augmentation of N150.000 billion.

The committee said from the amount, “the Federal Government received N424.867 Billion, the States received N453.724 Billion, the Local Government Councils got N329.864Billion, while the Oil Producing States received N90.415 Billion as Derivation, (13% of Mineral Revenue)”.

“The sum of N80.993 Billion was given for the cost of collection, while N878.946 Billion was allocated for Transfers Intervention and Refunds,” the statement reads.

‘STATUTORY REVENUE DECLINED BY 14%’

The communique issued by the FAAC at the end of the meeting said gross revenue available from the VAT increased to N583.675 billion in the month of September, from the N573.341 billion distributed in the preceding month.

From the amount, the committee said, the sum of N23.347 billion was allocated for the cost of collection, while N16.810 billion was given for transfers, intervention and refunds.

According to FAAC, the remaining N543.518 billion was distributed to the three tiers of government, with the federal government receiving N81.258 billion, while states and local government councils got N271.759 billion and N190.231 billion, respectively.

The committee also said the gross statutory revenue of N1.043 trillion was received in the month reviewed — lower than N1.221 trillion recorded in August by N177.426 billion (14.5).

“From the stated amount, the sum of N56.878 Billion was allocated for the cost of collection and a total sum of N862.136 Billion for Transfers, Intervention and Refunds,” FAAC said.

“The remaining balance of N124.718 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N43.037 Billion, States received N21.829 Billion, the sum of N16.829 Billion was allocated to LGCs and N43.021 Billion was given to Derivation Revenue (13% Mineral producing States).

“Also, the sum of N19.213 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.767 Billion, States got N9.222 Billion, Local Government Councils received N6.456 Billion, while N0.768 Billion was allocated for Cost of Collection.”

The communique said out of the exchange difference of N462.191 billion, the federal government got N218.515 billion, states were given N110.834 billion, and local governments received N85.448 billion.

About N47.394 billion derivation revenue was shared among oil-producing states, the committee said.

The FAAC said the augmentation revenue of N150.000 billion was shared between the federal government (N70.020 billion), states (N40.080 billion) and local governments (N30.900 billion).

According to the committee, oil and royalty, excise duty, EMTL and common external tariff (CET) levies increased considerably.

While VAT and import duty increased marginally, petroleum profit tax (PPT), the company income tax (CIT) and others recorded significant decreases.

“…the total revenue distributable for the current month of September 2024, was drawn from Statutory Revenue of N124.716 Billion, Value Added Tax (VAT) of N534.518 Billion, N18.445 Billion from Electronic Money Transfer Levy (EMTL), N462.191 Billion from Exchange Difference and Augmentation of N150.000 Billion, bringing the total distributable amount for the month to N1.298 Trillion,” the finance ministry said.

The ministry said the balance in the excess crude account (ECA) as at October 2024 is $473.754.

In his opening remarks, Edun restated the federal government’s commitment to implementing policies, programmes, and initiatives that will enhance revenue generation “with a view to enhancing the overall well-being of Nigerians in line with contemporary realities”.