The Federation Account Allocation Committee (FAAC) announced that it distributed N1.14 trillion among the three tiers of government in January 2024.
This amount is N22 billion higher than the N1.12 trillion shared in December of the previous year.
The disclosure was made in a communiqué released after the January meeting, which was led by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
According to the communiqué, the total distributable revenue of N1.14 trillion included N463.07 billion from statutory revenue, N391.78 billion from Value-Added Tax (VAT), N15.92 billion from Electronic Money Transfer Levy (EMTL) revenue, and N279.02 billion from exchange difference revenue.
“The total revenue of N2.068 trillion was available in the month of January 2024,” the communiqué reads.
The committee reported that out of the total revenue, there was a deduction of N78.41 billion for the cost of collection, N639.92 billion for total transfers, interventions, and refunds, and savings of N200 billion.
The communiqué stated that a gross statutory revenue of N1.15 trillion was received for January 2024, which is higher than the N875.38 billion received in December 2023 by N276.426 billion.
FAAC also mentioned that the gross revenue available from VAT was N420.73 billion, which is N71.77 billion lower than the N492.50 billion available in December 2023.
However, from the total distributable revenue of N1.14 trillion, the federal government received N407.26 billion, the states received N379.40 billion, and the local governments received N278.04 billion.
Additionally, N85.10 billion (13 percent of mineral revenue) was shared with the benefiting states as derivation revenue.
“From the N463.07 billion distributable statutory revenue, the federal government received N216.75 billion, the states received N109.94 billion, and the local governments received N84.76 billion,” FAAC said.
The committee reported that N51.61 billion was shared among the states as part of the 13 percent derivation revenue.
Out of the distributable VAT totaling N391.78 billion, the federal government received N58.76 billion, states received N195.89 billion, and local governments received N137.12 billion.
Also, from the N15.92 billion EMTL, the federal government received N2.38 billion, while states and local governments received N7.96 billion and N5.57 billion, respectively.
Furthermore, FAAC reported that the federal government received N129.35 billion from the N279.02 billion exchange difference revenue.
States were allocated N65.61 billion, and local governments received N50.58 billion. It was also mentioned that N33.48 billion was shared among benefiting states as 13 percent derivation revenue.
According to the communiqué, in January, there was a significant increase in companies income tax (CIT), import duty, petroleum profit tax, and oil and gas royalties. On the other hand, VAT, export duty, EMTL, and CET levies decreased considerably.
FAAC also stated that the balance in the excess crude account remained at $473.754 million.
