Despite lower gross statutory revenue earning in September, the Federal, States and Local Governments shared a total of N1.289 trillion for the month.
A communique issued at the end of the October 2024 meeting of the Federation Account Allocation Committee (FAAC) showed Gross Statutory Revenue realised for the month was about N1.043 Trillion. The figure was lower by N177.426 Billion than the N1.221 Trillion received in the previous month.
With augmentation with N150 billion, the meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, was able to share a total of N1.298 Trillion to the three tiers of government as Federation Allocation for the month from a gross revenue of N2.298 Trillion.
The gross revenue was inclusive of Gross Statutory Revenue of N1.043 Trillion; Value Added Tax (VAT) of N583.675 Billion; Electronic Money Transfer Levy (EMTL) of N19.213 Billion; Exchange Difference (ED) of N462.191 Billion, and Augmentation of N150 billion.
Although about N80.993 Billion was deducted for the cost of collection by the revenue agencies, namely Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the communique said another N878.946 Billion was allocated for Transfers Intervention and Refunds.
The distribution of the allocation showed the Federal Government received N424.867 Billion, States N453.724 Billion, the Local Government Councils N329.864 Billion, while the Oil Producing States got N90.415 Billion as 13% Derivation on Mineral Revenue.
Further details from the Communique issued by the FAAC Secretariat showed that the N583.675 Billion Gross Revenue from VAT collection for the month of September 2024 was higher than N573.341 Billion realised the previous month.
From that amount, about N23.347 Billion was allocated for the cost of collection, with about N16.810 Billion given for Transfers, Intervention and Refunds. The remaining sum of N543.518 Billion was distributed to the three tiers of government, of which the Federal Government got N81.258 Billion, the States N271.759 Billion and Local Government Councils N190.231 Billion.
Also, about N56.878 Billion was allocated for the cost of collection and a total sum of N862.136 Billion for Transfers, Intervention and Refunds.
The remaining balance of N124.718 Billion was distributed to the three tiers of government, namely Federal N43.037 Billion, States N21.829 Billion, N16.829 Billion allocated to LGCs and N43.021 Billion as 13% Derivation Revenue to Mineral producing States.
Also, about N19.213 Billion realised from Electronic Money Transfer Levy (EMTL) was distributed to the three tiers of government as follows: the Federal N2.767 Billion, States N9.222 Billion, Local Government Councils N6.456 Billion, while N0.768 Billion was allocated for Cost of Collection by revenue agencies.
The Communique also disclosed about N462.191 Billion realised as Exchange Difference was shared as follows: Federal N218.515 Billion, States N110.834 Billion, N85.448 Billion was allocated to Local Government Councils, while about N47.394 Billion was given 13% Derivation from Mineral Revenue.
Again, the N150 Billion Augmentation was shared as follows: Federal N70.020 Billion; States N40.080 Billion, and the LGCs N30.900 Billion.
The meeting noted that apart from increases in Oil and Royalty, Excise Duty, Electronic Money Transfer (EMTL), Customs Export Tariff (CET) levies increased considerably. While Value Added Tax (VAT) and Import Duty increased marginally. Petroleum Profit Tax (PPT) and Company Income Tax (CIT) and others recorded significant decreases.
The balance in the Excess Crude Account (ECA) as at October 2024 stands at $473.754
In his opening remarks, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, restated the President Bola Ahmed Tinubu-led Administration’s commitment to implementing policies, programmes and initiatives that would enhance revenue generation with a view to enhancing the overall well-being of Nigerians in line with contemporary realities.
