FAAC Shares N1.424trn Revenue to FG, States, LGAs
By Patience Ikpeme
The Federation Account Allocation Committee (FAAC) at its January 2025 meeting shared a total of N1.424 trillion to the Federal Government, States, and Local Government Councils from the December 2024 revenue.
The distributable revenue comprised N386.124 billion from statutory sources, N604.872 billion from Value Added Tax (VAT), N31.211 billion from Electronic Money Transfer Levy (EMTL), and N402.714 billion from Exchange Difference.
Total gross revenue for December 2024 amounted to N2.310 trillion, with deductions for cost of collection reaching N84.780 billion. Transfers, interventions, and refunds totaled N801.175 billion. Gross statutory revenue for the month stood at N1.226 trillion, a significant decrease of N600.988 billion compared to November 2024. In contrast, Gross VAT revenue reached N649.561 billion, surpassing November 2024 figures by N20.588 billion.
The revenue allocation saw the Federal Government receive N451.193 billion, State Governments N498.498 billion, and Local Government Councils N361.754 billion. Additionally, N113.477 billion was shared to the benefiting States as derivation revenue, representing 13% of mineral revenue.
A breakdown of the revenue distribution reveals that the Federal Government received N167.690 billion from statutory revenue, while State Governments received N85.055 billion and Local Governments N65.574 billion. Derivation revenue from statutory sources amounted to N67.806 billion.
From the N604.872 billion distributable VAT revenue, the Federal Government received N90.731 billion, State Governments N302.436 billion, and Local Governments N211.705 billion.
The Federal Government’s share from the N31.211 billion EMTL revenue was N4.682 billion, while State Governments received N15.605 billion and Local Governments N10.924 billion.
Finally, from the N402.714 billion Exchange Difference revenue, the Federal Government received N188.090 billion, State Governments N95.402 billion, Local Governments N73.551 billion, and derivation revenue amounted to N45.671 billion.
A notable observation is the significant decline in Oil and Gas Royalty, CET Levies, Excise Duty, Import Duty, Petroleum Profit Tax (PPT), and Companies Income Tax (CIT) during December 2024, while Value Added Tax (VAT) and Electronic Money Transfer Levy (EMTL) experienced substantial growth.
