FG, states, LGs share N1.411 trillion as October 2024 FAAC revenue

• The federal, state and local governments shared N1.411 trillion as October 2024 FAAC revenue
• The FAAC revenue comprises statutory, VAT, EMTL and Exchange Difference revenue.
• The Gross statutory revenue in October is higher than that of September

The Federal Government, 36 states and the Local Government Councils (LGs) shared N1.411 trillion as October 2024 Federation Accounts Allocation Committee (FAAC) revenue. 

The revenue was shared at the November 2024 meeting of FAAC, held in Bauchi State and chaired by the Accountant General of the Federation, Dr Oluwatoyin Madein.

A statement released on Wednesday, November 20, by the Director (Press and Public Relations) in the Office of the Accountant General of the Federation (OAGF), Bawa Mokwa, said the November 2024 FAAC meeting followed the 2024 National Council on Finance and Economic Development (NACOFED) hosted by the Bauchi State government.

The statement noted that the N1.411 trillion total distributable revenue comprised distributable statutory revenue of N206.319 billion, distributable Value Added Tax (VAT) revenue of N622.312 billion, Electronic Money Transfer Levy (EMTL) revenue of N17.111 billion and Exchange Difference revenue of N566.000 billion.

It added that in October 2024, oil and gas royalty, excise duty, VAT, import duty, Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) increased significantly while EMTL and CET levies decreased considerably.

Gross statutory revenue in October is higher than that of September

According to a communiqué issued by the committee, the total gross revenue available in October 2024 was N2.668 trillion. The total deduction for the cost of collection was N97.517 billion, while the total transfers, interventions and refunds were N1.159 trillion.    

Gross statutory revenue of N1.336 trillion was received for October 2024, which is N293.009 billion higher than the N1.043 trillion received in September 2024.

The communiqué also stated that gross revenue of N668.291 billion was available from the VAT in October 2024, which is N84.616 billion higher than the N583.675 billion available in September 2024.

How the FAAC revenue was shared

According to the communiqué, from the N1.411 trillion total distributable revenue, the Federal Government received N433.021 billion, state governments received N490.696 billion, and LGs received N355.621 billion. A total of N132.404 billion, 13 per cent of mineral revenue, was shared with the benefiting states as derivation revenue. 

Of the N206.319 billion distributable statutory revenue, the federal government received N77.562 billion, state governments received N39.341 billion, Local Government Councils received N30.330 billion and N59.086 billion, which is 13 per cent of mineral revenue was shared to the benefiting states as derivation revenue. 

From the N622.312 billion distributable VAT revenue, the Federal Government received N93.347 billion, state governments received N311.156 billion, and LGs received N217.809 billion. 

The Federal Government received N2.567 billion from the N17.111 billion EMTL, state governments received N8.555 billion, and Local Government Councils received N5.989 billion.

The communiqué added that from the N566.000 billion Exchange Difference revenue, the Federal Government received N259.545 state governments received N131.644 billion, LGs received N101.493 billion, while the sum of N73.318 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue. 

Why is FAAC revenue not reflective of development in states? Nigerians react to N2.5trn state allocation in H1 2024

Meanwhile, TheRadar reported that the distribution of a total of N1.345 trillion as FAAC revenue accrued to the federal, state and local governments in June 2024 brought the total FAAC revenue received by states in the first half of 2024 to N2.597 trillion.

However, Nigerians are wondering why the FAAC revenue is not commensurate to the level of development in states.