FAAC: FG, states, LGAs shared N1.4trn in October | VAT revenue increased by 14%

The federation account allocation committee (FAAC) says it shared N1.41 trillion among the three tiers of government in October 2024.

The amount shared represents an increase of N113 billion compared to the N1.29 trillion shared in September.

The allocation figures were captured in a FAAC communique issued at its monthly meeting on Wednesday, chaired by Oluwatoyin Madein, accountant-general of the federation.

The committee’s meeting was held after the 2024 national council on finance and economic development (NACOFED) hosted by the Bauchi state government.

The FAAC said the total gross revenue for October was N2.668 trillion.

The committee said the distributable revenue of N1.41 trillion comprises gross statutory revenue (N206.319 billion), value-added tax (N622.312 billion), electronic money transfer levy (N17.111 billion), and the exchange difference (N566 billion).

The communique said out of the amount, the federal government received N433.021 billion, the states got N490.696 billion while N355.621 billion, went to the local government councils.

“… the Oil Producing States received N132.404 Billion as Derivation, (13% of Mineral Revenue),” the communique reads.

“The sum of N97.517 Billion was given for the cost of collection, while N1.159 Trillion was allocated for Transfers Intervention and Refunds.”

The communique said the gross revenue available from the value-added tax (VAT) for the month of October was N668.291 billion as against N583.676 billion distributed in the preceding month, resulting in an increase of N84.616 billion (14.4 percent).

From that amount, FAAC said the sum of N26.732 billion was allocated for the cost of collection and the sum of N19.247 billion was given for transfers, intervention and refunds.

The remaining sum of N622.312 billion was distributed among the federal (N93.347 billion), states (N311.156 billion) and local government (N217.809 billion).

“Accordingly, the Gross Statutory Revenue of N1.336 Trillion received for the month was higher than the sum of N1.043 Trillion received in the previous month by N293.009 Billion,” the committee said.

“From the stated amount, the sum of N70.072 Billion was allocated for the cost of collection and a total sum of N1.060 Trillion for Transfers, Intervention and Refunds.

“The remaining balance of N206.319 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N77.562 Billion, States received N39.341 Billion, the sum of N30.330 Billion was allocated to LGCs and N59.086 Billion was given to Derivation Revenue (13% Mineral producing States).”

In addition, the sum of N17.824 billion from the electronic money transfer levy (EMTL) was distributed to the three tiers of government with the federal government receiving N2.567 billion and states collecting N8.555 billion.

FAAC said while the local government councils received N5.989 billion from the EMTL revenue, N0.713 billion was allocated for the cost of collection.

The communique also disclosed that out of the sum of N646 billion from exchange difference, the federal government received N259.545 billion, states got N131.644 billion while N101.493 billion was allocated to local government councils.

The committee said N73.318 billion was given for derivation (13% of mineral revenue) while N80 billion of the exchange difference was allocated to transfers, interventions and refunds.

According to FAAC, oil and royalty, excise duty, VAT, import duty, petroleum profit tax (PPT) and companies income tax (CIT) increased significantly, while EMTL and CET levies decreased considerably.