The Federation Accounts Allocation Committee (FAAC) has distributed a total of N1.411 trillion to the Federal Government, State Governments, and Local Government Councils (LGCs) for October 2024. This announcement was made in a communiqué by Mr. Bawa Mokwa, Director of Press and Public Relations, Office of the Accountant-General of the Federation, following the FAAC meeting in Bauchi State.
Meeting Highlights and Oversight
The meeting, chaired by the Accountant-General of the Federation, Oluwatoyin Madein, took place after the 2024 National Council on Finance and Economic Development (NACOFED), hosted by the Bauchi State Government. Discussions focused on strategies to optimize revenue generation and allocation amidst Nigeria’s economic challenges.
Revenue Components for October
The total revenue of N1.411 trillion was drawn from various streams:
- 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
A gross revenue of N2.668 trillion was generated in October. However, deductions for the cost of collection amounted to N97.517 billion, while transfers, interventions, and refunds totaled N1.159 trillion.
Statutory Revenue Increase: Gross statutory revenue rose to N1.336 trillion, reflecting a N293.009 billion increase from September’s N1.043 trillion.
VAT Growth: VAT revenue increased by N84.616 billion, reaching N668.291 billion in October compared to N583.675 billion in September.
Revenue Distribution
The disbursed N1.411 trillion was allocated as follows:
- Federal Government: N433.021 billion
- State Governments: N490.696 billion
- Local Government Councils: N355.621 billion
- Derivation Revenue (13% of mineral revenue): N132.404 billion for oil-producing states
Breakdown of Statutory Revenue (N206.319 billion):
- Federal Government: N77.562 billion
- State Governments: N39.341 billion
- Local Government Councils: N30.330 billion
- Derivation Revenue: N59.086 billion
Key Observations
The communiqué highlighted notable increases in revenue from:
- Oil and gas royalties
- Excise duties
- VAT
- Import duties
- Petroleum profit tax
- Companies’ income tax
In contrast, revenues from the Electronic Money Transfer Levy (EMTL) and Common External Tariff (CET) levies experienced declines.
Economic Insights and Growth Trends
A recent Central Bank of Nigeria (CBN) report revealed that earnings from the Federation Account rose to N6.28 trillion in Q2 2024, driven by VAT, customs, and excise duties.
Key Highlights from the CBN Report:
- Non-oil revenue accounted for N4.55 trillion, marking a 32.22% increase from the previous quarter.
- Revenue exceeded government targets by 23.07% during the period.
- VAT, customs, and excise duties contributed 72.42% of total earnings.
This consistent revenue growth underscores Nigeria’s improved fiscal policies and collection systems, bolstering the country’s ability to weather economic challenges.
FAAC’s October allocations signify a continued focus on financial stability and equitable distribution among Nigeria’s tiers of government.
Source: Nairametrics