The Federation Accounts Allocation Committee (FAAC) has distributed N1.411 trillion among the Federal Government, State Governments, and Local Government Councils (LGCs) for October 2024.
This was announced in a communiqué by Mr. Bawa Mokwa, Director of Press and Public Relations, Office of the Accountant-General of the Federation, following a FAAC meeting chaired by the Accountant-General of the Federation, Oluwatoyin Madein, in Bauchi State. The meeting coincided with the 2024 National Council on Finance and Economic Development (NACOFED).
Revenue Composition
The N1.411 trillion total allocation came from the following sources:
– 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
A gross revenue of N2.668 trillion was generated in October. Deductions for collection costs totaled N97.517 billion, and transfers, interventions, and refunds amounted to N1.159 trillion.
October’s gross statutory revenue of N1.336 trillion showed a significant increase of N293.009 billion compared to September’s N1.043 trillion. VAT revenue also rose to N668.291 billion, marking an increase of N84.616 billion from September’s N583.675 billion.
From the N1.411 trillion allocation:
– 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
For 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: N59.086 billion
Key Insights
The communiqué noted significant growth in revenues from oil and gas royalties, excise duties, VAT, import duties, petroleum profit tax, and companies’ income tax. However, revenues from EMTL and Common External Tariff (CET) levies declined.
This steady revenue increase highlights improved fiscal management and stronger collections despite Nigeria’s economic challenges.
According to a Central Bank of Nigeria (CBN) report, the Federation Account’s earnings for the second quarter of 2024 reached N6.28 trillion. This growth was driven by VAT, customs, and excise duties, which accounted for 72.42% of total revenue. Non-oil revenue contributed N4.55 trillion, reflecting a 32.22% rise from the previous quarter and surpassing the government’s target by 23.07%.
The CBN report underscores the growing significance of non-oil revenue in sustaining Nigeria’s economy.
