The Federation Account Allocation Committee has disbursed a total of ₦1.123tn to the federal, state, and local governments for March 2024.
The allocation, derived from a gross total of ₦1.867tn, marks a critical distribution of funds aimed at supporting various government tiers.
This was revealed in a statement signed by the Director of Information and Public Relations, Ministry of Finance, Mohammed Manga, on Friday.
The ₦1.123 trillion distributed revenue was broken down as: Distributable statutory revenue, ₦311.233 billion; Distributable Value Added Tax (VAT) revenue, ₦511.879 billion; Electronic Money Transfer Levy (EMTL) revenue, ₦14.754 billion and Exchange Difference revenue, ₦285.525 billion
While the total distributable revenue was lower than February’s ₦1.192 trillion by ₦69 billion, there were some bright spots.
Gross revenue available from Value Added Tax (VAT) in March 2024 was N549.698 billion, a significant increase of ₦89.210 billion compared to February’s ₦460.488 billion. This suggests increased economic activity, particularly in sectors that generate VAT.
Gross statutory revenue for March 2024 was ₦1.017 trillion, lower than the ₦1.192 trillion received in February. The communique did not specify reasons for the decline. Electronic Money Transfer Levy (EMTL) revenue also dipped slightly compared to February.
The ₦1.123 trillion was distributed as follows: Federal Government, ₦345.890 billion; State Governments: ₦398.689 billion; Local Government Councils: ₦288.688 billion. Additionally, a total of ₦90.124 billion (13 percent of mineral revenue) was shared to the benefiting States as derivation revenue.
The communique provided a more detailed breakdown of the distribution by revenue source:
Distributable statutory revenue: Federal Government, ₦133.960 billion; State Governments, ₦67.946 billion; Local Government Councils, ₦52.384 billion; Derivation Revenue (13 percent of mineral revenue), ₦56.943 billion.
Distributable Value Added Tax (VAT) revenue: Federal Government, ₦76.782 billion; State Governments, ₦255.940 billion; Local Government Councils, ₦179.158 billion.
Electronic Money Transfer Levy (EMTL): Federal Government, ₦2.213 billion; State Governments, ₦7.377 billion; Local Government Councils, ₦5.164 billion
Exchange Difference revenue: Federal Government, ₦132.935 billion; State Governments: ₦67.426 billion; Local Government Councils, ₦51.983 billion and Derivation Revenue (13 percent of mineral revenue), ₦33.181 billion
The communique noted an increase in Import Duty, VAT, Gas Royalty, and Company Income Tax (CIT) for March 2024 compared to February. However, there were also decreases in Excise Duty, Oil Royalty, Petroleum Profit Tax (PPT), Electronic Money Transfer Levy (EMTL), and Customs and Excise Tariff (CET) Levies.
The communique also revealed that the balance in the Excess Crude Account (ECA) stood at $473,754.57 as of March 2024.
The FAAC disbursement report provides valuable insights into Nigeria’s revenue generation and allocation patterns. While overall collections dipped slightly in March compared to February, the increase in VAT revenue is a positive sign.
The detailed breakdown by revenue source and tier of government allows for a deeper understanding of how these resources are distributed.
