FAAC Distributes N1.29 Trillion Among Nigeria’s Three Tiers of Government for September 2024
The Federation Account Allocation Committee (FAAC) announced that it shared N1.29 trillion among Nigeria’s three tiers of government in September 2024. This comes despite a 14.5 percent decline in gross statutory revenue for the month.
According to a statement released by the Ministry of Finance on Thursday, the total distributed revenue of N1.29 trillion represents an increase of N95 billion compared to the N1.203 trillion allocated in August. The disbursement was made during FAAC’s October meeting, chaired by Wale Edun, the Minister of Finance, in Abuja.
The N1.29 trillion distributable revenue comprised gross statutory revenue, value-added tax (VAT), electronic money transfer levy (EMTL), exchange difference (ED), and an augmentation of N150 billion.
From the amount shared, the federal government received N424.867 billion, while the states were allocated N453.724 billion. Local government councils received N329.864 billion, and N90.415 billion was given to oil-producing states as derivation revenue, representing 13% of mineral revenue.
Additionally, N80.993 billion was set aside for the cost of revenue collection, and N878.946 billion was allocated for transfers, interventions, and refunds. The FAAC communique also noted that VAT revenue increased slightly to N583.675 billion in September, compared to N573.341 billion in August. From this, N543.518 billion was shared among the three tiers of government, with the federal government receiving N81.258 billion, states N271.759 billion, and local councils N190.231 billion.
However, gross statutory revenue decreased to N1.043 trillion, down by N177.426 billion (14.5%) from the N1.221 trillion recorded in August. Out of this, N862.136 billion was earmarked for transfers, interventions, and refunds, while N124.718 billion was distributed to the federal government, states, local councils, and oil-producing states.
FAAC also distributed N19.213 billion from the Electronic Money Transfer Levy (EMTL), with the federal government receiving N2.767 billion, states N9.222 billion, and local councils N6.456 billion. The exchange difference of N462.191 billion was shared among the three tiers of government and oil-producing states.
An augmentation revenue of N150 billion was allocated to the federal government (N70.020 billion), states (N40.080 billion), and local councils (N30.900 billion). FAAC noted that while VAT and import duties saw marginal increases, petroleum profit tax (PPT) and company income tax (CIT) declined significantly.
The statement also revealed that the balance in the Excess Crude Account (ECA) as of October 2024 stands at $473.754 million. During the meeting, Finance Minister Wale Edun reiterated the federal government’s commitment to implementing policies aimed at improving revenue generation and enhancing the overall well-being of Nigerians
