FAAC Allocation of N1.088tr Signals Prosperous Future for States
By Patience Ikpeme
The Federation Account Allocation Committee (FAAC) has disbursed N1.088 trillion in November’s revenue to the Federal Government, States, and Local Government Councils.
This bountiful allocation is expected to catalyze improved living standards and spur developmental projects across the nation.
According to a communique released by FAAC during its December 2023 meeting, the N1.088 trillion distributable revenue is comprised of N376.306 billion from distributable statutory revenue, N335.656 billion from Value Added Tax (VAT) revenue, N11.952 billion from Electronic Money Transfer Levy (EMTL) revenue, and N364.869 billion from Exchange Difference revenue.
Remarkably, November’s total revenue reached N1.620 trillion. Deductions for cost of collection amounted to N60.960 billion, while transfers, interventions, and refunds summed up to N470.592 billion.
Gross statutory revenue for November 2023 stood at an impressive N882.560 billion, surpassing October’s N660.090 billion by N222.470 billion. Likewise, the gross revenue from VAT in November soared to N360.455 billion, marking an increase of N13.112 billion compared to October’s N347.343 billion.
Out of the N1.088 trillion distributable revenue, the Federal Government received N402.867 billion, the State Governments received N351.697 billion, and the Local Government Councils received N258.810 billion. Additionally, the benefiting states were allocated a total of N75.410 billion as derivation revenue, constituting 13% of the mineral revenue.
Further breakdown reveals that from the N376.306 billion distributable statutory revenue, the Federal Government received N174.908 billion, the State Governments received N88.716 billion, and the Local Government Councils received N68.396 billion. The benefiting states also received N44.286 billion as derivation revenue.
Meanwhile, the N335.656 billion distributable VAT revenue was allocated as follows: the Federal Government received N50.348 billion, the State Governments received N167. 828 billion, and the Local Government Councils received N117.480 billion.
The N11.952 billion Electronic Money Transfer Levy (EMTL) was divided amongst the stakeholders, with the Federal Government receiving N1.793 billion, the State Governments receiving N5.976 billion, and the Local Government Councils receiving N4.183 billion.
Furthermore, the Federal Government received N175.817 billion from the N364.869 billion Exchange Difference revenue, while the State Governments received N89.177 billion, and the Local Government Councils received N68.751 billion. A total of N31.124 billion was also allocated to the benefiting states as derivation revenue.
Notably, November witnessed substantial growth in Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), Oil and Gas Royalties, and Value Added Tax (VAT). Conversely, CET Levies, Import Duty, and Electronic Money Transfer Levy (EMTL) experienced slight declines.
This FAAC allocation showcases Nigeria’s economic resilience and signifies a brighter future for all. As the nation strives towards sustainable development, the Excess Crude Account (ECA) stands with a balance of $473,754.57.
