FAAC Shares N1.15 Trillion amongst Federal, State, and Local Govts
By Patience Ikpeme
At the latest Federation Accounts Allocation Committee (FAAC) meeting held in Abuja on Thursday, a total of N1,152.756 billion was distributed amongst the federal, state, and local governments.
According to a communique issued at the end of the meeting the distributed funds included N101.349 billion as statutory revenue, N428.806 billion as Value Added Tax (VAT) revenue, N15.157 billion as Electronic Money Transfer Levy (EMTL) revenue, and N607.444 billion as Exchange Difference revenue.
However, before the distribution, several deductions were made. These deductions included N66.456 billion as the cost of collection, N856.937 billion for transfers, interventions, and refunds, and finally, N250.000 billion for savings.
Out of the total distributable revenue, the Federal Government received N352.409 billion, while the state governments and local government councils received N366.950 billion and N267.153 billion, respectively.
The communique further highlighted that mineral revenues collected during this period resulted in the sharing of N166.244 billion to benefiting states as derivation revenue. This amount represents 13% of the mineral revenue earned by these states.
Interestingly, there were some variations in revenue sources compared to the previous month. The Petroleum Profit Tax (PPT), Import Duty Excise Duty, VAT, and CET Levies witnessed significant increases in February 2024, while Oil and Gas Royalties experienced a marginal increase. Conversely, Corporate Income Tax (CIT) and Electronic Money Transfer Levy (EMTL) recorded considerable decreases.
Moreover, the Excess Crude Account (ECA) balance for February 2024 stood at $473,754.57.
The latest allocation of funds by the FAAC will undoubtedly contribute to the government’s efforts in meeting its various developmental and administrative obligations across all levels. These funds will help stimulate economic growth, support infrastructure development, and address pressing needs at state and local levels.
With diligent management and prudent utilization of these allocated funds, it is hoped that Nigeria will witness further progress and prosperity in the coming months.
