FAAC allocates N1.15trn to FG, states, LGs

The Federation Allocation Accounts Committee, FAAC, said on Thursday that the overall amount of money received by the government in January 2024 grew to N2.07 trillion, of which N1.15 trillion was distributed to the federal government, the states, and local government districts.

Following its monthly meeting in Abuja, the FAAC released a communiqué stating that the revenue was distributed to support the requirements of the subnational governments.

The sum divided is N29 billion less than the N1.44 trillion paid out in January 2023, according to a news statement issued by Bawa Mokwa, Director of news and Public Relations at the Office of the Accountant-General of the Federation.

According to the release, the N1.45 trillion total distributable revenue was made up of N463.1 billion in distributable statutory revenue, N391.8 billion in distributable value added tax income, N15.9 billion in revenue from the Electronic Money Transfer Levy, and N279.03 billion in revenue from exchange differences.

It further stated that N200 billion was set aside as savings in January 2024, out of a total revenue of N2.07 trillion.

“Total deductions for the cost of collection was N78.4bn, total transfers, interventions, and refunds was N640bn and savings was N200bn.

“Gross statutory revenue of N1.15trn was received for the month of January 2024. This was higher than the sum of N875bn received in the month of December 2023 by N276bn,” the communique read.

The communique further stated that from the N1.15trn total distributable revenue, the Federal Government received a total of N407.267 bn, the state governments received N379.407 bn and the local governments received N278.041bn.

It added that VAT collection was reduced by N71.7bn to N420.7bn in the month ending.

The statement added, “The gross revenue available from the Value Added Tax in January 2024 was N420.733 billion. This was lower than the N492.506 billion available in the month of December 2023 by N71.773 billion.

“From the N1,149.816 billion total distributable revenue, the Federal Government received a total of N407.267 billion, the State Governments received N379.407 billion and the Local Government Councils received N278.041 billion.

“A total sum of N85.101 billion (13 per cent of mineral revenue) was shared with the benefiting States as derivation revenue.

“From the N463.079 billion distributable statutory revenue, the Federal Government received N216.757 billion, the State Governments received N109.942 billion and the Local Government Councils received N84.761 billion. The sum of N51.619 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

“The Federal Government received N58.768 billion, the State Governments received N195.894 billion and the Local Government Councils received N137.125 billion from the N391.787 billion distributable Value Added Tax revenue.”

Also, the N15.922 billion Electronic Money Transfer Levy was shared as follows: the Federal Government received N2.388bn, the state governments received N7.961bn and the local governments received N5.573 billion.

“The Federal Government received N129.354 billion from the N 279.028 billion Exchange Difference revenue. The State Governments received N65.610 billion, and the Local Government Councils received N50.582 billion. The sum of N33.482 billion (13 per cent of mineral revenue) was shared with the benefiting States as derivation revenue.

“In January 2024, Companies Income Tax, Import Duty, Petroleum Profit Tax, and Oil and Gas Royalties increased significantly, while Value Added Tax, Export Duty, Electronic Money Transfer Levy, and CET Levies decreased considerably.

“The balance in the ECA was $473,754.57,” the statement concluded.

 

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