The Federation Account Allocation Committee (FAAC) has announced the distribution of a total sum of N1.13 trillion in earnings for December 2023, to the Federal Government, States, and Local Government Councils.
This figure represents an increase of N500 billion compared to the N1.08 trillion allocated to each state in November. The FAAC released a communique following its January 2024 meeting, which was chaired by Dr. Oluwatoyin Madein, the Accountant General of the Federation. The committee reported that the N1.13 trillion distributable revenue consisted of N363.188 billion in distributable statutory revenue, N458.622 billion in distributable Value Added Tax (VAT) revenue, N17.855 billion in Electronic Money Transfer Levy revenue, and N287.743 billion in Exchange Difference revenue.
Dr. Madein, as quoted in a statement by Bawa Mokwa, the Director of Press and Public Relations, stated that a total of N57.92 billion (13% of mineral revenue) was also 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”.
It is worth noting that the federation account has experienced increased revenue since the removal of subsidies and the unification of the country’s exchange rate by the current administration.
The statement further revealed, “The N1.13 trillion 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.”
The communique also highlighted that the total deductions for cost of collection amounted to N62.254 billion, while total transfers, interventions, and refunds reached N484.568 billion.
In terms of specific revenue sources, the gross statutory revenue for December 2023 stood at N875.382 billion, which was N7.178 billion lower than the N882.560 billion received in November 2023.
The statement indicated that the gross revenue available from VAT in December 2023 was N492.506 billion, marking a significant increase of N132.1 billion compared to the N360.455 billion available in November 2023.
From the total distributable revenue of N1,127.408 billion, the Federal Government received N383.872 billion, State Governments received N396.693 billion, and Local Government Councils received N288.928 billion.
Furthermore, the statement disclosed, “A total sum of N57.915 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.”
Breakdowns of the distribution were provided, stating that from the N363.188 billion distributable statutory revenue, the Federal Government received N173.729 billion, State Governments received N88.118 billion, and Local Government Councils received N67.935 billion. Additionally, N33.406 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
Regarding the N458.622 billion distributable VAT revenue, the Federal Government received N68.793 billion, State Governments received N229.311 billion, and Local Government Councils received N160.518 billion.
The distribution of the N17.855 billion Electronic Money Transfer Levy was as follows: the Federal Government received N2.678 billion, State Governments received N8.928 billion, and Local Government Councils received N6.249 billion.
Moreover, the Federal Government received N138.672 billion from the N287.743 billion Exchange Difference revenue. State Governments received N70.336 billion, while Local Government Councils received N54.226 billion. An additional sum of N24.509 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
However, the FAAC also noted that Companies Income Tax, Excise Duty, Petroleum Profit Tax, VAT, and Electronic Money Transfer Levy witnessed significant increases in December 2023, while Oil and Gas Royalties experienced a substantial decrease. Import Duty and CET Levies decreased marginally.
Finally, the statement concluded by revealing that the balance in the Excess Crude Account (ECA) stood at $473,754.57.