The Federation Account Allocation Committee (FAAC) has disclosed that it disbursed a total sum of N1.13 trillion in earnings for the month of December 2023 to the Federal Government, States, and Local Government Councils.
This marked a significant increase of N500 billion compared to the N1.08 trillion shared in November.
The revelation came through a communique issued after the FAAC’s January 2024 meeting, which was presided over by Dr. Oluwatoyin Madein, the Accountant General of the Federation.
Dr. Madein highlighted the breakdown of the N1.13 trillion total distributable revenue, which included distributable statutory revenue of N363.188 billion, distributable Value Added Tax (VAT) revenue of N458.622 billion, Electronic Money Transfer Levy revenue of N17.855 billion, and Exchange Difference revenue of N287.743 billion.
In a statement quoted by Bawa Mokwa, the Director of Press and Public Relations, Dr. Madein emphasized that N57.92 billion (13% of mineral revenue) was allocated to the benefiting states as derivation revenue.
The total revenue available in December 2023 amounted to N1,674.230 billion, reflecting the positive impact of the removal of subsidies and the unification of the country’s exchange rate by the current administration.
Dr. Madein addressed the components of the total distributable revenue, stating, “The N1.13 trillion total distributable revenue comprised distributable statutory revenue of N363.188 billion, distributable Value Added Tax revenue of N458.622 billion, Electronic Money Transfer Levy revenue of N17.855 billion, and Exchange Difference revenue of N287.743 billion.”
He further explained the financial deductions, transfers, interventions, and refunds, amounting to N62.254 billion and N484.568 billion, respectively.
The gross statutory revenue for December 2023 was N875.382 billion, slightly lower than November’s N882.560 billion, with a difference of N7.178 billion. VAT revenue witnessed a significant increase, reaching N492.506 billion, up by N132.1 billion from November’s N360.455 billion.
The distribution from the total distributable revenue saw the Federal Government receiving N383.872 billion, the State Governments receiving N396.693 billion, and the Local Government Councils receiving N288.928 billion.
Additionally, N57.915 billion (13% of mineral revenue) was allocated to the benefiting states as derivation revenue.
Quoting Dr. Madein, the statement revealed, “From the N363.188 billion distributable statutory revenue, the Federal Government received N173.729 billion, the State Governments received N88.118 billion, and the Local Government Councils received N67.935 billion. The sum of N33.406 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.”
Allocation from the distributable VAT revenue included the Federal Government receiving N68.793 billion, the State Governments receiving N229.311 billion, and the Local Government Councils receiving N160.518 billion. The Electronic Money Transfer Levy of N17.855 billion was distributed with the Federal Government receiving N2.678 billion, the State Governments receiving N8.928 billion, and the Local Government Councils receiving N6.249 billion.
The Exchange Difference revenue of N287.743 billion saw the Federal Government getting N138.672 billion, the State Governments receiving N70.336 billion, and the Local Government Councils receiving N54.226 billion. N24.509 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
FAAC noted changes in revenue sources, with significant increases in Companies Income Tax, Excise Duty, Petroleum Profit Tax, VAT, and Electronic Money Transfer Levy. However, Oil and Gas Royalties decreased substantially, while Import Duty and CET Levies witnessed a marginal decrease.
The balance in the Excess Crude Account (ECA) stood at $473,754.57 as of the end of December 2023, according to FAAC’s statement.
