The Federation Account Allocation Committee (FAAC) has distributed a total of N1.411 trillion to the three tiers of government for the month of October 2024, following its meeting in Bauchi, chaired by Dr. Mrs. Oluwatoyin S. Madein, the Accountant General of the Federation.
The gross total revenue for the month amounted to N2.668 trillion, which included contributions from various revenue streams such as Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Differences (ED).
Allocations Breakdown
• The Federal Government received N433.021 billion.
• The States were allocated N490.696 billion.
• Local Government Councils (LGCs) received N355.621 billion.
• Oil-producing states earned N132.404 billion as Derivation, which constitutes 13% of Mineral Revenue.
The total cost of collection for the month was N97.517 billion, with N1.159 trillion earmarked for Transfers, Intervention, and Refunds.
VAT Revenue on the Rise
The VAT collection for October 2024 showed a significant increase, with N668.291 billion collected, up from N583.676 billion in September. The increase of N84.616 billion was primarily allocated as follows:
• The Federal Government received N93.347 billion,
• States got N311.156 billion,
• LGCs received N217.809 billion,
• N26.732 billion was allocated for the cost of collection,
• N19.247 billion was allocated to Transfers, Interventions, and Refunds.
Statutory Revenue Growth
The Gross Statutory Revenue for October was N1.336 trillion, up from N1.043 trillion in September, marking an increase of N293.009 billion. After deductions for cost of collection (N70.072 billion) and Transfers, Intervention, and Refunds (N1.060 trillion), the balance of N206.319 billion was shared among the three tiers of government. The Federal Government received N77.562 billion, States received N39.341 billion, Local Government Councils got N30.330 billion, and N59.086 billion was allocated to Oil-Producing States.
Other Revenue Streams
From the Electronic Money Transfer Levy (EMTL), a total of N17.824 billion was distributed, with the Federal Government receiving N2.567 billion, States getting N8.555 billion, and LGCs receiving N5.989 billion. A small portion of N0.713 billion was allocated for the cost of collection.
Additionally, N646 billion from Exchange Differences (ED) was shared among the three tiers of government:
• The Federal Government received N259.545 billion,
• States got N131.644 billion,
• Local Government Councils were allocated N101.493 billion,
• N73.318 billion was earmarked for Derivation,
• N80 billion was allocated for Transfers, Interventions, and Refunds.
Revenue Insights
The report highlighted significant increases in revenues from Oil and Royalty, Excise Duty, VAT, Import Duty, Petroleum Profit Tax (PPT), and Companies Income Tax (CIT), while collections from the EMTL and CET levies showed considerable decreases.
Conclusion
In total, the distributable revenue for October 2024 amounted to N1.411 trillion, drawn from Statutory Revenue, VAT, Electronic Money Transfer Levy (EMTL), and Exchange Difference, underscoring the diverse sources of income that contribute to Nigeria’s federal allocation system. This allocation aims to support the continued functioning of federal, state, and local governments, with a focus on fostering economic development across all tiers of government.
