The Federation Account Allocation Committee (FAAC) shared N1.149 trillion to the three tiers of government –federal, state and Local Government Areas.
The N1.149 trillion total distributable revenue comprised distributable statutory revenue of N463.079 billion; distributable Value Added Tax (VAT) revenue of N391.787 billion; Electronic Money Transfer Levy (EMTL) revenue of N15.922 billion; and Exchange Difference revenue of N279.028 billion.
The Federal Government received a total of N407.267 billion, the State Governments received N379.407 billion and the Local Government Councils received N278.041 billion.
The balance of N919 billion was saved in a special account created after fuel subsidy removal on May 29, 2023. Excess Crude Account (ECA), however, still stands at $473,754.57.
Bawa Mokwa, Director (Press and Public Relations) in the Office of the Accountant-General of the Federation (OAGF), said in a statement yesterday that “the revenue was shared at the February 2024 meeting of the Federation Accounts Allocation Committee (FAAC) chaired by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun.”
Mokwa, quoting a communique by FAAC, added that N279.028 billion was recorded as gain from FX fluctuations. “Interestingly the federation account benefitted N279.028 billion from the January crash of the Naira.
The inflow of N279.028 billion from Exchange Rate differentials in January 2024 signifies the gains realised from favourable exchange rate movements on foreign currency transactions or investments that were translated into the local currency, ultimately boosting the financial position of the federation account.
“In other words, the dollar rate at which the nation sold crude oil resulted as a blessing to the federation account when the Naira fell.”
The OAGF spokesman added that the gross statutory revenue of N1.151 trillion was received for January 2024.
“This was higher than the sum of N875.382 billion received in December 2023 by N276.426 billion,” he said.
According to him, “ gross revenue available from the Value Added Tax (VAT) in January 2024 was N420.733 billion. This was lower than the N492.506 billion available in December 2023 by N71.773 billion.”
“A total sum of N85.101 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
“From the N463.079 billion distributable statutory revenue, the Federal Government received N216.757 billion, the State Governments received N109.942 billion and the Local Government Councils received N84.761 billion. The sum of N51.619 billion (13 percent of mineral revenue) was shared with the benefiting states as derivation revenue.
“The Federal Government received N58.768 billion, the State Governments received N195.894 billion and the Local Government Councils received N137.125 billion from the N391.787 billion distributable Value Added Tax (VAT) revenue.
“The N15.922 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N2.388 billion, the State Governments received N7.961 billion and the Local Government Councils received N5.573 billion.
“The Federal Government received N129.354 billion from the N279.028 billion Exchange Difference revenue. The State Governments received N65.610 billion, and the Local Government Councils received N50.582 billion. The sum of N33.482 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
“In January 2024, Companies Income Tax (CIT), Import Duty, Petroleum Profit Tax (PPT) and Oil and Gas Royalties increased significantly, while Value Added Tax (VAT), Export Duty, Electronic Money Transfer Levy (EMTL) and CET Levies decreased considerably. “
Deductions for the cost of collection were N78.412 billion; total transfers, interventions and refunds, N639.926 billion; and savings, N200.000 billion.