The Federation Account Allocation Committee has reported the distribution of a total sum of N1.13 trillion in earnings for December 2023 among the Federal Government, States, and Local Government Councils. This marks an increase of N500 billion compared to the N1.08 trillion allocated to each state in November.
In a communique released after its January 2024 meeting, chaired by Dr. Oluwatoyin Madein, the Accountant General of the Federation, FAAC outlined the components of the N1.13 trillion total distributable revenue. This included distributable statutory revenue of N363.188 billion, distributable Value Added Tax revenue of N458.622 billion, Electronic Money Transfer Levy revenue of N17.855 billion, and Exchange Difference revenue of N287.743 billion.
Madein, quoted in a statement by Bawa Mokwa, the Director of Press and Public Relations, mentioned that a total of N57.92 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
The communique further detailed that the total revenue available in December 2023 was N1,674.230 billion. Notably, the increase in revenue is attributed to the removal of subsidies and the unification of the country’s exchange rate by the current administration.
According to the statement, “The N1.13 trillion total distributable revenue comprised distributable statutory revenue of N363.188 billion, distributable Value Added Tax revenue of N458.622 billion, Electronic Money Transfer Levy revenue of N17.855 billion, and Exchange Difference revenue of N287.743 billion. Total deductions for the cost of collection were N62.254 billion, and total transfers, interventions, and refunds amounted to N484.568 billion.”
The communique revealed that the gross statutory revenue for December 2023 was N875.382 billion, slightly lower than the N882.560 billion received in November 2023.
Additionally, the statement highlighted an increase in the gross revenue from Value Added Tax, reaching N492.506 billion in December, compared to N360.455 billion in November 2023.
Breaking down the N1,127.408 billion total distributable revenue, the Federal Government received N383.872 billion, State Governments received N396.693 billion, and Local Government Councils received N288.928 billion. Furthermore, N57.915 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
The communique provided a detailed breakdown of the distribution from the various revenue streams, emphasizing the allocation to the Federal Government, State Governments, and Local Government Councils.
However, FAAC noted, “In the month of December 2023, Companies Income Tax, Excise Duty, Petroleum Profit Tax, Value Added Tax, and Electronic Money Transfer Levy increased significantly, while Oil and Gas Royalties decreased substantially. Import Duty and CET Levies decreased marginally.”
The statement concluded by mentioning that the balance in the Excess Crude Account (ECA) stood at $473,754.57 as of the end of December 2023.
