The Federation Account Allocation Committee (FAAC) has distributed N1.424 trillion to the federal government, states, and local government councils as federation allocation for December 2024.
This was disclosed in a communiqué issued by the Director of Information and Public Relations at the Ministry of Finance, Mohammed Manga, following the FAAC meeting held on Friday in Abuja.
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At the meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, it was disclosed that the allocation was derived from a gross revenue of N2.310 trillion.
Out of the total distributable amount, the federal government received N451.193 billion, while the states and local councils were allocated N498.498 billion and N361.754 billion, respectively.
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Oil-producing states received N113.477 billion as derivation revenue, representing 13 per cent of mineral revenue. Additionally, N84.780 billion was set aside for the cost of collection, and N801.175 billion was allocated for transfers, interventions, and refunds.
Statutory revenue for the month stood at N1.226 trillion, a decrease of N6.988 billion compared to the preceding month’s N1.827 trillion.
From this amount, N57.498 billion was deducted for the cost of collection, while N782.468 billion was designated for transfers, interventions, and refunds.
The remaining N386.124 billion was shared among the tiers of government, with the federal government receiving N167.690 billion, the states N85.055 billion, the local councils N65.574 billion, and oil-producing states N67.806 billion in derivation.
Revenue from Value Added Tax (VAT) amounted to N649.561 billion, reflecting an increase of N20.588 billion compared to the N628.973 billion recorded in November.
After deductions of N25.982 billion for the cost of collection and N18.707 billion for transfers, interventions, and refunds, the distributable VAT balance stood at N604.872 billion.
From this, the federal government received N90.731 billion, while the states and local councils received N302.436 billion and N211.705 billion, respectively.
The committee also reported that revenue from the Electronic Money Transfer Levy (EMTL) for December amounted to N31.211 billion.
Of this, N1.300 billion was allocated for the cost of collection, leaving N29.911 billion to be shared among the three tiers of government.
The federal government received N4.682 billion, the states N15.605 billion, and the local councils N10.924 billion.
Also, N402.714 billion from exchange difference revenue was distributed, with the federal government allocated N188.090 billion, the states N95.402 billion, the local councils N73.551 billion, and the oil-producing states N45.671 billion as derivation revenue.
The communiqué noted significant increases in revenues from VAT and the Electronic Money Transfer Levy, which offset the considerable declines in revenue from Oil and Gas Royalty, CET Levies, Excise Duty, Import Duty, Petroleum Profit Tax, and Companies Income Tax.
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In total, the distributable revenue for December 2024 comprised N386.124 billion from statutory revenue, N604.872 billion from VAT, N31.211 billion from EMTL, and N402.714 billion from exchange difference.
This cumulative amount of N1.424 trillion underscores both the challenges in statutory revenue and the growing reliance on VAT and EMTL to support public finances.
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