Emmanuel OchayiFAAC Meeting Highlights Revenue Disbursement
The Federation Accounts Allocation Committee (FAAC) has announced the sharing of a total revenue of N1.411 trillion among federal, state, and local government councils for October 2024. The allocation was revealed during the November FAAC meeting held in Bauchi State, chaired by Oluwatoyin Madein, the Accountant-General of the Federation.
“This distribution reflects our commitment to transparent and equitable allocation of funds,” Madein said during the meeting.
Join our WhatsApp ChannelBreakdown of the October Revenue
FAAC disclosed that the N1.411 trillion shared consisted of:
- Statutory revenue: N206.319 billion.
- Value Added Tax (VAT): N622.312 billion.
- Electronic Money Transfer Levy (EMTL): N17.111 billion.
- Exchange Difference revenue: N566 billion.
According to FAAC’s communiqué, total gross revenue for October stood at N2.668 trillion, with N97.517 billion deducted for collection costs and N1.159 trillion allocated for interventions and refunds.
Revenue Growth Compared to September
The gross statutory revenue for October 2024 was N1.336 trillion, a N293.009 billion increase from the N1.043 trillion recorded in September. Similarly, VAT revenue rose to N668.291 billion, surpassing the previous month’s N583.675 billion by N84.616 billion.
FAAC attributed these increases to improved collections from Oil and Gas Royalty, Excise Duty, and VAT.
How the Revenue Was Shared
Out of the N1.411 trillion distributable revenue, allocations were made as follows:
- Federal government: N433.021 billion.
- State governments: N490.696 billion.
- Local government councils: N355.621 billion.
- Mineral revenue derivation (13%): N132.404 billion.
“The Federal Government received N77.562 billion from statutory revenue, while state governments and local councils received N39.341 billion and N30.330 billion respectively,” FAAC stated.
For VAT revenue, the Federal Government took N93.347 billion, state governments received N311.156 billion, and local councils got N217.809 billion.
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Key Revenue Sources for October
FAAC highlighted the significant contribution of several key sources, including:
- Oil and Gas Royalty.
- Petroleum Profit Tax (PPT).
- Companies Income Tax (CIT).
- Import Duty and VAT.
However, there was a noted decline in Electronic Money Transfer Levy (EMTL) and CET Levies.
Exchange Difference Revenue Details
From the N566 billion Exchange Difference revenue, allocations were made as follows:
- Federal government: N259.545 billion.
- State governments: N131.644 billion.
- Local councils: N101.493 billion.
- Derivation revenue: N73.318 billion for benefiting states.
“The increases reflect growth in several sectors, but we must continue to monitor revenue fluctuations to maintain fiscal stability,” Madein emphasised.
FAAC’s Outlook on Revenue Allocation
The FAAC meeting, which coincided with the 2024 National Council on Finance and Economic Development (NACOFED), showcased efforts to strengthen fiscal management and ensure fair distribution of national revenue.
As revenue trends improve, stakeholders remain optimistic. “We are committed to sustaining these gains while addressing challenges in underperforming areas,” Madein concluded.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
