FAAC: FG, States, LG Set To Share N1.15tn

Posted by African Examiner Featured, Latest Headlines, News Across Nigeria Thursday, February 22nd, 2024

(AFRICAN EXAMINER) – Total revenue accrued to coffers of the government increased to N2.07trn in January 2024 out of which a total sum of N1.15trn was disbursed to the Federal Government, states, and Local Government Area Councils, the Federation Allocation Accounts Committee disclosed on Thursday.

FAAC in a communiqué issued at the end of its monthly meeting in Abuja said the revenue was shared to meet the needs of the sub-national government.

According to a press release by the Director of Press and Public Relations of the Office of the Accountant-General of the Federation, Bawa Mokwa, the amount shared is N29bn less than the N1.44tn disbursed in January 2023.

The communiqué said the N1.45tn total distributable revenue comprised distributable statutory revenue of N463.1bn, distributable Value Added Tax revenue of N391.8bn, Electronic Money Transfer Levy revenue of N15.9bn and exchange difference revenue of N279.03bn.

It added that a total revenue of N2.07trn was available in the month of January 2024 while N200bn was kept as savings.

“Total deductions for the cost of collection was N78.4bn, total transfers, interventions, and refunds was N640bn and savings was N200bn.

“Gross statutory revenue of N1.15tn was received for the month of January 2024. This was higher than the sum of N875bn received in the month of December 2023 by N276bn,” it added.

The communiqué further stated that from the N1.15tn total distributable revenue, the Federal Government received a total of N407.267bn, state governments received N379.407bn while LGs received N278.041bn.

It added that VAT collection was reduced by N71.7bn to N420.7bn in the month ending.

“The gross revenue available from the Value Added Tax in January 2024 was N420.733bn. This was lower than the N492.506 billion available in the month of December 2023 by N71.773bn.

“From the N1,149tntotal distributable revenue, the Federal Government received a total of N407.267bn, the state governments received N379.407bn and the LGs received N278.041bn.

“A total sum of N85.101bn (13 per cent of mineral revenue) was shared with the benefiting States as derivation revenue.

“From the N463.079bn distributable statutory revenue, the Federal Government received N216.757bn, the state governments received N109.942bn and the Local Government Councils received N84.761bn. The sum of N51.619bn (13 per cent of mineral revenue) was shared with the benefiting States as derivation revenue.”

In the month of January 2024, Companies Income Tax, Import Duty, Petroleum Profit Tax, and Oil and Gas Royalties increased significantly, while Value Added Tax, Export Duty, Electronic Money Transfer Levy, and CET Levies decreased considerably.