CBN Reports N6.86tn Growth in Federation Account, Driven by Corporate Tax, VAT
In the third quarter of 2024, Nigeria’s federation account received a total of N6.86 trillion, marking a 7.48% increase compared to the previous quarter according to reports by the central bank of Nigeris
This growth was largely driven by higher non-oil revenues, particularly from corporate taxes and value-added tax (VAT). Non-oil revenue accounted for the majority of the earnings, reaching N5.56 trillion, which was 19.48% higher than the previous quarter and 50.36% above the set target. This increase reflected improvements in revenue collection, surpassing budget expectations.
Despite the overall increase in earnings, oil revenue experienced a decline of 24.72%, dropping to N1.30 trillion as the drop was attributed to operational issues, including problems with old oil pipelines and equipment.
Consequently, the contribution from oil revenue to the total federation account was significantly reduced, with non-oil sources becoming the dominant revenue stream as Nigeria’s federation account saw a significant growth in non-oil revenue in the third quarter of 2024, despite a drop in oil earnings.
