The Federation Account Allocation Committee (FAAC) has announced the distribution of a total sum of N1.13 trillion in earnings for December 2023, among the Federal Government, States, and Local Government Councils.
This marks an increase of N500 billion compared to the N1.08 trillion shared in November.
In a communique released after its January 2024 meeting, chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein, FAAC detailed the composition of the N1.13 trillion distributable revenue.
The breakdown includes distributable statutory revenue of N363.188 billion, distributable Value Added Tax (VAT) revenue of N458.622 billion, Electronic Money Transfer Levy revenue of N17.855 billion, and Exchange Difference revenue of N287.743 billion.
Dr. Madein emphasized that N57.92 billion (13% of mineral revenue) was allocated to the benefiting states as derivation revenue.
The total revenue available in December 2023 amounted to N1,674.230 billion.
The statement highlighted that the increased revenue is attributed to the removal of subsidies and the unification of the country’s exchange rate by the current administration.
The breakdown further revealed that total deductions for the cost of collection were N62.254 billion, while total transfers, interventions, and refunds amounted to N484.568 billion.
The gross statutory revenue for December 2023 was N875.382 billion, slightly lower than the N882.560 billion received in November by N7.178 billion.
Regarding VAT, the gross revenue available in December 2023 was N492.506 billion, showing an increase of N132.1 billion from November 2023.
From the N1,127.408 billion total distributable revenue, the Federal Government received N383.872 billion, State Governments received N396.693 billion, and Local Government Councils received N288.928 billion. Additionally, N57.915 billion (13% of mineral revenue) was shared with benefiting states as derivation revenue.
The breakdown of the distributable statutory revenue showed that the Federal Government received N173.729 billion, State Governments received N88.118 billion, and Local Government Councils received N67.935 billion. A sum of N33.406 billion (13% of mineral revenue) was also shared with benefiting states as derivation revenue.
The distributable VAT revenue of N458.622 billion saw the Federal Government receiving N68.793 billion, State Governments receiving N229.311 billion, and Local Government Councils receiving N160.518 billion.
The Electronic Money Transfer Levy of N17.855 billion was distributed, with the Federal Government receiving N2.678 billion, State Governments receiving N8.928 billion, and Local Government Councils receiving N6.249 billion.
From the N287.743 billion Exchange Difference revenue, the Federal Government received N138.672 billion, State Governments received N70.336 billion, and Local Government Councils received N54.226 billion. N24.509 billion (13% of mineral revenue) was allocated to benefiting states as derivation revenue.
FAAC noted changes in various revenue streams in December 2023, including significant increases in Companies Income Tax, Excise Duty, Petroleum Profit Tax, VAT, and Electronic Money Transfer Levy, while Oil and Gas Royalties decreased substantially. Import Duty and CET Levies decreased marginally.
The communique concluded by stating that the balance in the Excess Crude Account (ECA) was $473,754.57 as of December 2023.
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