FAAC allocation rises 7.9% as FG,states,local councils share N1.298trn September revenue 

Onome Amuge

The Federation Account Allocation Committee (FAAC) has disbursed a total sum of N1.298 trillion as federation allocation for the month of September 2024, accorded to the federal and state governments, as well as the country’s 777 local government councils, representing a 7.9 percent increase from the N1.203 trillion shared in the previous month

The figures were disclosed in a press statement issued by Bawa Mokwa, the director of press and public relations at the Office of the Accountant-General of the Federation. Mokwa noted that the FAAC meeting held in Abuja in October 2024 was the source of these figures.

The statement noted, “The N1.298tn total distributable revenue comprised distributable statutory revenue of N124.716bn, distributable Value Added Tax revenue of N543.518bn, Electronic Money Transfer Levy revenue of N18.445bn, Exchange Difference revenue of N462.191bn and Augmentation of N150.000bn.”

According to the FAAC report, the total revenue generated for the month of September 2024 was N2.258 trillion. After deducting N80.993 billion in collection costs and N878.946 billion for transfers, interventions, and refunds, the net amount of revenue available for distribution stood at N1.298 trillion.

From this net figure, the federal government received a total of N424.867 billion, state governments were allocated N453.724 billion, and local governments received N329.864 billion

Also, N90.415bn, representing 13 percent of mineral revenue, was allocated to oil-producing states.

The breakdown of revenue allocation from the N124.716 billion statutory revenue showed that the federal government received N43.037 billion, the states N21.829 billion, and the local governments N16.829 billion. In addition, the 13 percent derivation principle was applied, with oil-producing states being allocated a total of N43.021 billion.

The distribution of revenue from the N543.518 billion VAT revenue saw the federal government receiving N81.528 billion, the states getting N271.759 billion, and the local governments collecting N190.231 billion.

Also, the Excess Marginal Tax (EMTL) revenue of N18.445 billion was shared among the different levels of government, with the federal government receiving N2.767 billion, the states getting N9.222 billion, and the local governments receiving N6.456 billion.

The exchange difference revenue of N462.191 billion was also shared among the three tiers of government, with N218.515 billion allocated to the federal government, N110.834 billion to the states, and N85.448 billion to the local governments. In accordance with the 13 percent derivation principle, N47.394 billion was allocated to the oil-producing states.

The N150 billion augmentation was also shared among the different levels of government, with N79.020 billion going to the federal government, N40.080 billion to the states, and N30.900 billion to the local governments

The FAAC statement noted that while there were increases in Oil and Gas Royalty, Excise Duty, Electronic Money Transfer Levy, and CET Levies in September 2024, the Value Added Tax and Import Duty showed only marginal growth. Meanwhile, Petroleum Profit Tax, Companies Income Tax, and others recorded significant decreases.