The Federation Accounts Allocation Committee (FAAC) has disbursed a total of N1.411 trillion to the Federal Government, State Governments, and Local Government Councils (LGCs) for October 2024.
This was disclosed in a communiqué issued by Mr. Bawa Mokwa, Director of Press and Public Relations, Office of the Accountant-General of the Federation, after the FAAC meeting held in Bauchi State.
The meeting, chaired by the Accountant-General of the Federation, Oluwatoyin Madein, followed the 2024 National Council on Finance and Economic Development (NACOFED), hosted by the Bauchi State Government.
Revenue Breakdown
The total revenue of N1.411 trillion comprised the following components:
- 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
The communiqué further revealed that a total 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.
Gross statutory revenue for October stood at N1.336 trillion, marking a significant increase of N293.009 billion compared to N1.043 trillion recorded in September.
Similarly, VAT revenue for October was N668.291 billion, up by N84.616 billion from N583.675 billion in September.
Revenue distribution
From the total revenue of N1.411 trillion:
- 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
On the statutory revenue of N206.319 billion:
- Federal Government: N77.562 billion
- State Governments: N39.341 billion
- Local Government Councils: N30.330 billion
- Derivation Revenue (13% of mineral revenue): N59.086 billion
Key observations
The communiqué highlighted significant increases in revenue from oil and gas royalties, excise duties, VAT, import duties, petroleum profit tax, and companies’ income tax. Conversely, revenues from the Electronic Money Transfer Levy (EMTL) and Common External Tariff (CET) levies saw considerable declines.
This consistent revenue growth reflects improved collections and strategic management of Nigeria’s fiscal policies, despite ongoing economic challenges.
- Meanwhile, a recent economic report released by the Central Bank of Nigeria (CBN) revealed that the revenue of the Federation Account earnings rose to N6.28 trillion in the second quarter of 2024, driven by significant collections from Value Added Tax (VAT), customs, and excise duties.
- These sources dominated earnings within the federation account during the period, contributing 72.42% of the total revenue.
- According to the CBN report, non-oil revenue accounted for N4.55 trillion, reflecting a 32.22% increase compared to the preceding quarter.
The revenue also exceeded the government’s target by 23.07% during the same period.
