The Federation Allocation Accounts Committee, FAAC, on Thursday, disbursed a total of N1.15trillion to the three tiers of government-the Federal Government, states, and local government areas.
The disbursement was made from the total revenue accrued to the coffers of the government increased to N2.07trillion in January 2024.
Revealing this in a communique issued at the end of its monthly meeting in Abuja, FAAC said the revenue was shared to meet the needs of the subnational governments.
And a press release issued by the Director of Press and Public Relations of the Office of the Accountant-General of the Federation, Mr. Bawa Mokwa, stated that the amount shared was N29billion less than the N1.44trillion disbursed a year ago, in January 2023.
According to the communique, the N1.45trillion total distributable revenue comprised distributable statutory revenue of N463.1bn, distributable Value Added Tax revenue of N391.8bn, Electronic Money Transfer Levy revenue of N15.9bn and Exchange Difference revenue of N279.03bn.
“Total deductions for the cost of collection was N78.4bn, total transfers, interventions, and refunds was N640bn and savings was N200bn,” the communique continued.
“Gross statutory revenue of N1.15trn was received for the month of January 2024. This was higher than the sum of N875bn received in the month of December 2023 by N276bn.”
The communique further stated that from the N1.15trn total distributable revenue, the Federal Government received a total of N407.267 bn, the state governments received N379.407 bn and the local governments received N278.041bn.
However, there was a drastic reduction in the amount of Value Added Tax, VAT, collected in January 2024 when compared to what came in the month before, December 2023.
“The gross revenue available from the Value Added Tax in January 2024 was N420.733 billion. This was lower than the N492.506 billion available in the month of December 2023 by N71.773 billion,” the statement further revealed.
“From the N1,149.816 billion total distributable revenue, 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.
“A total sum of N85.101 billion (13 per cent of mineral revenue) was shared with 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% 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 revenue.”
Still, that’s not all. The statement also gave a breakdown of how the N15.922 billion collected from the Electronic Money Transfer Levy was shared: while the Federal Government got N2.388bn, the state governments received N7.961bn and the local governments received N5.573 billion.
“The Federal Government received N129.354 billion from the N 279.028 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 per cent of mineral revenue) was shared with the benefiting States as derivation revenue.
“In January 2024, Companies Income Tax, Import Duty, Petroleum Profit Tax, and Oil and Gas Royalties increased significantly, while Value Added Tax, Export Duty, Electronic Money Transfer Levy, and CET Levies decreased considerably.
“The balance in the ECA was $473,754.57,” the statement concluded.
