BY EDMOND ODOK – From a gross total of N2.298 trillion, the Federation Account Allocation Committee (FAAC) has shared the sum of N1.298 trillion to the three tiers of government as Federation Allocation for September 2024.
Rising from its October 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, FAAC said the quoted amount includes Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED and Augmentation of N150.000 billion.
According to the meeting’s Communique, the total revenue distributable for the month under review was N124.716 billion from Statutory Revenue, N534.518 billion from Value Added Tax (VAT), N18.445 billion from Electronic Money Transfer Levy (EMTL), N462.191 billion from Exchange Difference, and N150.000 billion from Augmentation, bringing the total distributable amount for the month to N1.298 trillion.
The FAAC’s distribution breakdown showed the Federal Government collected N424.867 billion, the States received N453.724 billion, the Local Government Councils got N329.864Billion, while the Oil Producing States pocketed N90.415 billion as derivation, (being 13 percent of mineral revenue).
A statement by Mohammed Manga, Director of Information and Public Relations, Federal Ministry of Finance explained that the sum of N80.993 billion was paid out for the cost of collection, while N878.946 billion was allocated for Transfers Intervention and Refunds.
Also, the FAAC’s communique indicated that the Gross Revenue available from VAT for September 2024 stood at N583.675 billion compared to N573.341 billion shared in the preceding month, representing an increase in revenue for all tiers of government.
From the recorded amount, N23.347 billion was allocated for the cost of collection and the sum of N16.810 billion was used to service Transfers, Intervention, and Refunds.
“The remaining sum of N543.518 billion was distributed to the three tiers of government, of which the Federal Government got N81.258 billion, the States received N271.759 billion and Local Government Councils got N190.231 billion”, the statement said.
However, the statement said the Gross Statutory Revenue of N1.043 trillion received for the month was lower than the sum of N1.221 trillion that accrued to the purse in the previous month by about N177.426 billion.
Furthermore, from the stated amount, the sum of N56.878 billion was allocated for the cost of collection and a total sum of N862.136 billion for Transfers, Interventions, and Refunds.
Offering insights on the distributed amount, the statement said; “The remaining balance of N124.718 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N43.037 Billion, States received N21.829 Billion, the sum of N16.829 Billion was allocated to LGCs and N43.021 Billion was given to Derivation Revenue (13 percent Mineral producing States).
“Also, the sum of N19.213 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.767 Billion, States got N9.222 Billion, Local Government Councils received N6.456 Billion, while N0.768 Billion was allocated for Cost of Collection.”
The communique also explained that N462.191 billion from Exchange Difference was shared as follows: “Federal Government received N218.515 Billion, States got N110.834 Billion, the sum of N85.448 Billion was allocated to Local Government Councils, N47.394 Billion was given for Derivation (13 percent of Mineral Revenue).”
It further disclosed of the Augmentation of N150.000 Billion which was shared as follows: “Federal Government received N70.020 billion, the States received N40.080 billion and the LGCs received N30.900 billion.”
On the whole, FAAC said Oil and Royalty, Excise Duty, Electronic Money Transfer (EMTL) and CET levies increased considerably while Value Added Tax (VAT) and Import Duty recorded marginal increases with Petroleum Profit Tax (PPT) and Company Income Tax (CIT) and others witnessing significant shortfalls.
For the Excess Crude Account (ECA), the statement stated that the balance as of October 2024 stands at $473.754 million.
Meanwhile, Minister of Finance, Mr Wale Edun, who spoke at the meeting, assured that the President Bola Ahmed Tinubu-led Administration is committed to implementing policies, programmes, and initiatives that will enhance revenue generation for the country.
He said current developments are aimed at enhancing the overall well-being of Nigerians in line with contemporary realities.
