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Nigeria: FAAC Revenue Drops by ₦303 Billion in December

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FAAC Revenue Drops by ₦303 Billion in December
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The Federal Government, states, and local government councils shared ₦1.424 trillion as revenue for December 2024, marking a notable decline of ₦303 billion, or 17.54%, compared to the ₦1.727 trillion distributed in November 2024.

According to a press statement from Bawa Mokwa, the Director of Press and Public Relations at the Office of the Accountant General of the Federation, this revenue allocation was finalized during the Federation Account Allocation Committee (FAAC) meeting held in Abuja on Friday.

The statement confirmed, “A total sum of ₦1.424 trillion, being December 2024 Federation Account Revenue, has been shared to the Federal Government, States, and the Local Government Councils.”

Breakdown of Revenue

A communiqué issued after the FAAC meeting provided a detailed breakdown of the distributable revenue:

  • Statutory Revenue: ₦386.124 billion
  • Value Added Tax (VAT): ₦604.872 billion
  • Electronic Money Transfer Levy: ₦31.211 billion
  • Exchange Difference Revenue: ₦402.714 billion

Despite the decline in allocation, the total gross revenue for December 2024 stood at ₦2.310 trillion, an increase from the ₦1.827 trillion recorded in November.

From this gross revenue, deductions included ₦84.780 billion for the cost of collection and ₦801.175 billion allocated for transfers, interventions, and refunds.

Allocation Details

The Federal Government received ₦451.193 billion from the total distributable revenue, while States and Local Government Councils were allocated ₦498.498 billion and ₦361.754 billion, respectively. Additionally, ₦113.477 billion, representing 13% of mineral revenue, was distributed to oil-producing states as derivation revenue.

Statutory Revenue:

  • Federal Government: ₦167.690 billion
  • States: ₦85.055 billion
  • Local Government Councils: ₦65.574 billion
  • Derivation Revenue: ₦67.806 billion

VAT Revenue:

  • Federal Government: ₦90.731 billion
  • States: ₦302.436 billion
  • Local Government Councils: ₦211.705 billion

Electronic Money Transfer Levy:

  • Federal Government: ₦4.682 billion
  • States: ₦15.605 billion
  • Local Government Councils: ₦10.924 billion

Exchange Difference Revenue:

  • Federal Government: ₦188.090 billion
  • States: ₦95.402 billion
  • Local Government Councils: ₦73.551 billion
  • Derivation Revenue: ₦45.671 billion

Revenue Trends

While VAT and Electronic Money Transfer Levy revenues increased significantly in December 2024, other revenue streams, such as Oil and Gas Royalty, CET Levies, Excise Duty, Import Duty, Petroleum Profit Tax, and Companies Income Tax, recorded declines.

Payment to Local Government Councils

Addressing the issue of direct payments to local government councils, Bawa Mokwa stated that such a structure is yet to be implemented. For December 2024, allocations for local governments were disbursed to state accounts. He confirmed that efforts are ongoing to establish a framework for direct payments.

This significant revenue dip and ongoing structural reforms underscore the critical need for improved revenue collection and management strategies.

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