FAAC Distributes N1.123 Trn to Federal, States, and Local Governments
By Patience Ikpeme
The Federation Account Allocation Committee (FAAC) has disbursed a total sum of N1.123 trillion as the March 2024 Federation Account Revenue to the Federal Government, States, and Local Government Councils.
The breakdown of the distribution was revealed in a communique issued by the FAAC during its meeting for April 2024.
The N1.123 trillion total distributable revenue can be further broken down into different categories.
The amount comprised distributable statutory revenue of N311.233 billion, distributable Value Added Tax (VAT) revenue of N511.879 billion, Electronic Money Transfer Levy (EMTL) revenue of N14.754 billion, and Exchange Difference revenue of N285.525 billion.
According to the FAAC communique, the total revenue available for distribution in March 2024 stood at N1.867 trillion.
However, after deducting N69.537 billion for the cost of collection, as well as N674.880 billion for transfers, interventions, and refunds, the distributable revenue of N1.123 trillion was reached.
Looking closer at the individual revenue sources, the gross statutory revenue for March 2024 amounted to N1.017 trillion. This was a decrease of N175.212 billion compared to the previous month, as February 2024 had recorded a gross statutory revenue of N1.192 trillion.
On the other hand, the gross revenue available from the Value Added Tax (VAT) in March 2024 was N549.698 billion. This showed an increase of N89.210 billion from the preceding month, as February 2024 had seen a VAT revenue of N460.488 billion.
From the total distributable revenue of N1.123 trillion, the Federal Government received N345.890 billion, while the State Governments received N398.689 billion, and the Local Government Councils received N288.688 billion. Additionally, a sum of N90.124 billion, which is equivalent to 13% of mineral revenue, was shared among the states as derivation revenue.
Further dissecting the distribution, N311.233 billion was attributed to the distributable statutory revenue. This was divided as N133.960 billion for the Federal Government, N67.946 billion for the State Governments, and N52.384 billion for the Local Government Councils. Moreover, a sum of N56.943 billion, equivalent to 13% of mineral revenue, was shared as derivation revenue among the benefiting states.
Regarding the distributable Value Added Tax (VAT) revenue, the Federal Government received N76.782 billion, the State Governments received N255.940 billion, and the Local Government Councils received N179.158 billion from the N511.879 billion allocation.
Furthermore, the Electronic Money Transfer Levy (EMTL) revenue of N14.754 billion was divided as follows: the Federal Government received N2.213 billion, the State Governments received N7.377 billion, and the Local Government Councils received N5.164 billion.
As for the Exchange Difference revenue, the Federal Government received N132.935 billion from the total of N285.525 billion. The State Governments received N67.426 billion, and the Local Government Councils received N51.983 billion. An additional sum of N33.181 billion, equivalent to 13% of mineral revenue, was shared among the benefiting states as derivation revenue.
The report indicated some changes in revenue sources compared to the previous month. Import Duty, Value Added Tax (VAT), Gas Royalty, Companies Income Tax (CIT), and other categories experienced increases, while Excise Duty, Oil Royalty, Petroleum Profit Tax (PPT), Electronic Money Transfer Levy (EMTL), and CET Levies saw decreases.
The balance in the Excess Crude Account (ECA), it stood at $473,754.57.
