The Federal Government, along with States and Local Government Councils, will collectively receive N1.411 trillion from the Federation Account for the month of October 2024. This allocation forms part of the N2.668 trillion total revenue generated in the period, as disclosed during the Federal Accounts Allocation Committee (FAAC) meeting in Bauchi.
The meeting, chaired by the Accountant General of the Federation, Dr. Mrs. Oluwatoyin S. Madein, outlined the revenue distribution for October. A sum of N97.517 billion was deducted for collection costs, and N1.159 trillion was allocated for Transfers, Interventions, and Refunds.
Breakdown of Revenue Components
1. Value Added Tax (VAT):
Gross revenue from VAT in October 2024 totaled N668.291 billion, an increase of N84.616 billion compared to the previous month’s figure of N583.676 billion.
• Deductions: N26.732 billion for collection costs and N19.247 billion for Transfers, Interventions, and Refunds.
• Distribution: N622.312 billion was shared among the three tiers of government:
• Federal Government: N93.347 billion
• State Governments: N311.156 billion
• Local Government Councils: N217.809 billion
2. Gross Statutory Revenue:
The gross statutory revenue for October reached N1.336 trillion, marking a significant rise of N293.009 billion from September’s N1.043 trillion.
• Deductions: N70.072 billion for collection expenses and N1.060 trillion for Transfers, Interventions, and Refunds.
Implications
The FAAC’s allocation highlights an upward trend in revenue generation, particularly from VAT and statutory sources. This improvement reflects ongoing efforts to boost revenue collection and optimize resource allocation among the federal, state, and local governments.
The distributed funds are expected to support critical developmental initiatives across the three tiers of government, including infrastructure, public services, and fiscal interventions to stimulate economic growth.
The FAAC meeting underscores the commitment of the federal and state governments to equitable revenue sharing and financial transparency.
