The Federation Account Allocation Committee (FAAC) has announced that it distributed N1.29 trillion to the three tiers of government in September 2024.
This represents an increase of N95 billion compared to the N1.203 trillion allocated in August, despite a reported 14.5% decline in Nigeria’s gross statutory revenue.
In a statement released on Thursday, the Ministry of Finance disclosed that the allocation was made from a gross total revenue of N2.298 trillion. The announcement was made during FAAC’s October meeting in Abuja, chaired by Wale Edun, the Minister of Finance.
According to the committee, the N1.29 trillion distributable revenue for September was drawn from various sources, including gross statutory revenue, value-added tax (VAT), electronic money transfer levy (EMTL), exchange difference (ED), and an augmentation fund of N150 billion.
Breaking down the allocation, FAAC noted:
- The Federal Government received N424.867 billion.
- State Governments were allocated N453.724 billion.
- Local Government Councils received N329.864 billion.
- Oil-producing states got N90.415 billion as derivation revenue (13% of mineral revenue).
Additionally, N80.993 billion was allocated for the cost of collection, while N878.946 billion was set aside for transfers, interventions, and refunds.
VAT Revenue and Statutory Revenue Overview
The committee reported an increase in VAT revenue, which rose to N583.675 billion in September, up from N573.341 billion distributed in the previous month. From the VAT amount:
- N23.347 billion was allocated for the cost of collection.
- N16.810 billion was set aside for transfers and interventions.
- The remaining N543.518 billion was distributed, with the Federal Government receiving N81.258 billion, states getting N271.759 billion, and local governments receiving N190.231 billion.
FAAC also highlighted that gross statutory revenue for September stood at N1.043 trillion, marking a 14.5% decline from the N1.221 trillion recorded in August. The decrease amounted to N177.426 billion. From the gross statutory revenue:
- N56.878 billion was earmarked for the cost of collection.
- N862.136 billion was allocated for transfers and refunds.
- The balance of N124.718 billion was distributed among the three tiers of government.
Other Revenues and Augmentation
The Electronic Money Transfer Levy (EMTL) generated N19.213 billion, which was distributed as follows:
- The Federal Government received N2.767 billion.
- State Governments were allocated N9.222 billion.
- Local Governments received N6.456 billion.
- N0.768 billion was set aside for the cost of collection.
From the exchange difference of N462.191 billion, the Federal Government received N218.515 billion, states got N110.834 billion, and local governments were allocated N85.448 billion. Additionally, N47.394 billion was distributed among oil-producing states as derivation revenue.
An augmentation of N150 billion was shared between the Federal Government (N70.020 billion), states (N40.080 billion), and local governments (N30.900 billion).
Revenue Trends
While FAAC noted increases in revenues from oil and royalty, excise duty, EMTL, and common external tariff (CET) levies, it reported a significant decrease in petroleum profit tax (PPT), company income tax (CIT), and other sources.
The total distributable revenue for September was drawn from:
- N124.716 billion in statutory revenue.
- N534.518 billion in VAT.
- N18.445 billion from EMTL.
- N462.191 billion from the exchange difference.
- N150 billion from augmentation.
The Ministry of Finance also disclosed that the balance in Nigeria’s Excess Crude Account (ECA) as of October 2024 stands at $473.754.
In his opening remarks, Minister Wale Edun reaffirmed the Federal Government’s commitment to implementing policies aimed at enhancing revenue generation to improve the overall well-being of Nigerians.
