FG, states, LGs share N1.72trn as federation revenue hits N3.14trn

The Federation Account Allocation Committee (FAAC) disbursed a total of N1.72 trillion to federal, states and local government councils in November.

This represents a slight increase from N1.4 trillion disbursed in the previous month.

The total amount allocated was from the N3.143 trillion total gross revenue for the month of November. This is higher than N2.668 trillion gross revenue recorded in October 2024, according to the communique issued by the Committee at the end of
its December 2024 meeting chaired by Wale Edun, minister of finance and the coordinating minister of the economy on Friday.

The stated amount includes income from Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference (ED). The federal government received N581.856 billion, states got N549.792 billion, while local government councils got N402.553 Billion. Oil-producing states received N193.291 billion as derivation, (13 percent of mineral revenue).

The sum of N103.307 billion was given for the cost of collection, while N1.312 trillion was allocated for transfers intervention and refunds.

The communique indicates that the gross revenue available from the Value Added Tax (VAT) for the month of November 2024 was N628.972 billion as against N668.291 billion distributed in the preceding month, indicating a decrease of N39.318 Billion.

“From that amount, the sum of N25.159 billion was allocated for the cost of collection and the sum of N18.114 Billion given for Transfers, Intervention and Refunds. The remaining sum of N628.973 billion was distributed to the three tiers of government, of which the Federal Government got N87.855 billion, the States received N292.850 billion and Local Government Councils got N204.995 billion,” it stated.

Accordingly, the gross statutory revenue of N1.827 trillion received for the month was higher than N1.336 trillion received in the previous month by N490.339 billion. From the stated amount, the sum of N77.521 billion was allocated for the cost of collection and a total sum of N1.294 trillion for transfers, intervention and refunds.

The remaining balance of N455.354 billion was distributed as follows to the three tiers of government: Federal government, N175.690 billion; states, N89.113 billion; and local governments, N68.702 billion. About N121.849 billion was given to oil-bearing states as derivation revenue (13 percent mineral states).

Also, the sum of N15.046 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three tiers of government as follows: the Federal government, N2.257 billion; states, N7.523 billion; and local government councils, N5.266 billion. About N0.0627 billion was allocated as the cost of collection.

The communique also indicates that the sum of N671.392 billion from Exchange Difference was shared, with the federal government receiving N316.054 billion; states getting N160.306 billion, and LGs receiving the sum of N123.590 billion. About N71.442 billion was given for derivation (13 percent of mineral revenue).

According to the communique, “The total revenue distributable for the current month of November 2024, was drawn from Statutory Revenue of N455.354 Billion, Value Added Tax (VAT) of N585.700 Billion, N15.046 Billion from Electronic Money Transfer Levy (EMTL), and N671.392 Billion from Exchange Difference, bringing the total distributable amount for the month to N1.727 Trillion.”