In a recent report, the Federation Account Allocation Committee (FAAC) revealed that N1.42 trillion was distributed among the federal government, states, and local government areas (LGAs) in December 2024, a significant increase from the N1.72 trillion shared in November.
However, the report highlights a concerning 32% decline in Nigeria’s gross statutory revenue.
The total allocation of N2.31 trillion for the month included proceeds from gross statutory revenue, value-added tax (VAT), electronic money transfer levy (EMTL), and exchange difference (ED).
The federal government received N451 billion, while states and LGAs were allocated N498 billion and N361 billion, respectively.
Oil-producing states received N113.477 billion as derivation revenue, which accounts for 13% of mineral revenue.
Additionally, N84.7 billion was earmarked for cost of collection, with N801 billion allocated for transfers, interventions, and refunds.
The VAT allocation showed a slight increase, rising to N649.5 billion, up from N628.9 billion the previous month. From this amount, the federal government received N90.73 billion, states received N302.44 billion, and LGAs were allocated N211.7 billion.
Despite the increase in VAT and EMTL collections, the FAAC report revealed a sharp drop in gross statutory revenue, which declined by 32.9% from N1.82 trillion in November to N1.22 trillion in December.
Of the gross statutory revenue, N386.12 billion was distributed among the three tiers of government, with the federal government receiving N167.69 billion.
Other contributions, such as N31.2 billion from the EMTL, were also shared among the federal government, states, and LGAs, while N402.7 billion from exchange difference was allocated to all levels of government, with the federal government receiving N188 billion.
The decline in oil and gas royalty, customs and excise duties, petroleum profit tax (PPT), and companies income tax (CIT) contrasted with the strong performance in VAT and EMTL, raising concerns about the stability of Nigeria’s revenue generation mechanisms in the coming months.
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