By Adeyemi Adekunle
The Federation Account Allocation Committee (FAAC) has shared a total of N1.727 trillion as revenue allocation to the Federal Government, States, and Local Government Councils (LGCs) for the month of November 2024. This was disclosed in a communique released after the FAAC’s December meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The N1.727 trillion allocation was drawn from a gross revenue of N3.143 trillion, which comprised Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference. Out of the total allocation, the Federal Government received N581.856 billion, State Governments got N549.792 billion, Local Government Councils were allocated N402.553 billion, while Oil-Producing States received N193.291 billion as 13 percent derivation revenue.
The communique further stated that N103.307 billion was earmarked for the cost of revenue collection, while N1.312 trillion was allocated for Transfers, Intervention, and Refunds.
The Gross Statutory Revenue for November stood at N1.827 trillion, reflecting an increase of N490.339 billion compared to the N1.336 trillion generated in the preceding month. From this amount, N77.521 billion was deducted for collection costs, while N1.294 trillion was allocated for Transfers, Intervention, and Refunds.
The remaining balance of N455.354 billion was distributed among the three tiers of government, with the Federal Government receiving N175.690 billion, States N89.113 billion, Local Government Councils N68.702 billion, and N121.849 billion allocated as derivation revenue to Oil-Producing States.
Revenue from Value Added Tax (VAT) for November was N628.972 billion, a decrease of N39.318 billion compared to the N668.291 billion recorded in October. After deductions of N25.159 billion for collection costs and N18.114 billion for Transfers, Intervention, and Refunds, the remaining N585.700 billion was distributed, with the Federal Government receiving N87.855 billion, States N292.850 billion, and Local Government Councils N204.995 billion.
The communique also revealed that the Electronic Money Transfer Levy (EMTL) contributed N15.046 billion, distributed as follows: the Federal Government received N2.257 billion, States N7.523 billion, Local Government Councils N5.266 billion, while N0.0627 billion was deducted as collection costs.
Revenue from the Exchange Difference amounted to N671.392 billion, of which the Federal Government received N316.054 billion, States N160.306 billion, Local Government Councils N123.590 billion, and Oil-Producing States N71.442 billion as 13 percent derivation revenue.
The communique noted significant increases in revenue from Oil and Gas Royalties and the Common External Tariff (CET) levies. However, declines were recorded in revenue from Excise Duty, VAT, Import Duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), and EMTL.
In total, the distributable revenue for November 2024 stood at N1.727 trillion, drawn from the Statutory Revenue of N455.354 billion, VAT of N585.700 billion, EMTL of N15.046 billion, and Exchange Difference of N671.392 billion.
The FAAC emphasized the importance of ensuring transparency in the allocation and urged all tiers of government to prudently utilize their shares of the revenue for sustainable development.
