The Federation Account Allocation Committee (FAAC), at its December 2024 meeting chaired by the Honourable Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, shared a total sum of N1.424 Trillion to the three tiers of government as Federation Allocation for the month of December, 2024 from a gross total of N2.310 Trillion.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED), the Federal Government received N451.193 Billion, the States received N498.498 Billion, the Local Government Councils got N361.754 Billion, while the Oil Producing States received N113.477 Billion as Derivation, (13% of Mineral Revenue).
The sum of N84.780 Billion was given for the cost of collection, while N801.175 Billion was allocated for Transfers Intervention and Refunds.
The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of December 2024, was N649.561 Billion as against N628.973 Billion distributed in the preceding month, resulting in an increase of N20.588 Billion.
From that amount, the sum of N25.982 Billion was allocated for the cost of collection and the sum of N18.707 Billion given for Transfers, Intervention and Refunds. The remaining sum of N649.561 Billion was distributed to the three tiers of government, of which the Federal Government got N90.731 Billion, the States received N302.436 Billion and Local Government Councils got N211.705 Billion.
Accordingly, the Gross Statutory Revenue of N1.226 Billion received for the month was lower than the sum of N1.827 Billion received in the previous month by N6.988 Billion. From the stated amount, the sum of N57.498 Billion was allocated for the cost of collection and a total sum of N782.468 for Transfers, Intervention and Refunds.
The remaining balance of N386.124 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N167.690 Billion, States received N85.055 Billion, the sum of N65.574 Billion was allocated to LGCs and N67.806 Billion was given to Derivation Revenue (13% Mineral producing States).
Also, the sum of N31.211 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N4.682 Billion, States got N15.605 Billion, Local Government Councils received N10.924 Billion, while N1.300 Billion was allocated for Cost of Collection.
The Communique also disclosed that the sum of N402.714 Billion from Exchange Difference, which was shared as follows: Federal Government received N188.090 Billion, States got N95.402 Billion, the sum of N73.551 Billion was allocated to Local Government Councils, N45.671 Billion was given for Derivation (13% of Mineral Revenue).
Value Added Tax(VAT) and Electronic Money Transfer Levy (EMTL) increased significantly, while Oil and Gas Royalty, CET Levies, Excise Duty, Import Duty, Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) decreased considerably.
According to the Communique, the total revenue distributable for the current month of December 2024, was drawn from Statutory Revenue of N386.124 Billion, Value Added Tax (VAT) of N604.872 Billion, N31.211 Billion from Electronic Money Transfer Levy (EMTL), and N402.714 Billion from Exchange Difference, bringing the total distributable amount for the month to N1,424 Trillion.
Signed
Mohammed Manga FCIA
Director, Information and Public Relations