News Update
THE revenue shared among the federal, state, and local governments in November 2024, as accrued from the Federation Accounts Allocation Committee, FAAC, increased by N490 billion, rising to N1.727 trillion from N1.3 trillion in the previous month.
This was disclosed in FAAC’s latest communiqué on allocations to the three tiers of government, released on Friday.
According to the communiqué, the country generated a gross revenue of N3.143 trillion in November, marking a noticeable increase from the previous month. Total deductions for the cost of collection were reported at N103.307 billion.
However, revenue from Value Added Tax, VAT, experienced a decline, with November’s earnings at N628.972 billion, down by N39.318 billion compared to October.
The revenue breakdown includes distributable statutory revenue of N455.354 billion; distributable VAT revenue of N585.700 billion; Electronic Money Transfer Levy, EMTL, of N15.046 billion; and N671.392 billion revenue from exchange differences.
The distribution of revenue showed the Federal Government received N581.856 billion, while state governments received N549.792 billion, and local government councils got N402.553 billion. This total includes N193.291 billion shared as derivation revenue, representing 13 per cent of mineral revenue.
Additionally, transfers, interventions, and refunds accounted for N1.312 trillion.
A further breakdown of the distributable statutory revenue revealed that the Federal Government received N175.690 billion. State governments on the other hand received N89.113 billion, while local governments garnered N68.702 billion.
From VAT revenue, the Federal Government received N87.855 billion while state governments got N292.850 billion and local governments received N204.995 billion.
Of the EMTL revenue of N15.046 billion, the Federal Government received N2.257 billion, state governments received N7.523 billion and local governments received N5.266 billion.
Revenue from exchange differences was allocated as follows: Federal Government, N316.054 billion; state governments, N160.306 billion; and local governments, N123.590 billion. An additional N71.442 billion was allocated as derivation revenue to benefiting states.
The report highlighted fluctuating trends across various revenue streams during the month. While increases were noted in oil and gas royalties and CET levies, declines were observed in excise duties, VAT, import duties, petroleum profit tax, companies’ income tax, and EMTL.