A total sum of ₦1.424 trillion, being the Federation Account Revenue for December 2024, has been distributed among the Federal Government, States, and Local Government Councils.
The sharing was finalised at the January 2025 Federation Account Allocation Committee (FAAC) meeting held in Abuja.
This was disclosed in a statement signed by Bawa Mokwa, Director of Press and Public Relations at FAAC.
According to the statement, the distributable revenue comprised ₦386.124 billion from statutory revenue, ₦604.872 billion from Value Added Tax (VAT), ₦31.211 billion from Electronic Money Transfer Levy (EMTL), and ₦402.714 billion from exchange difference revenue.
A communiqué issued by FAAC revealed that the total gross revenue for December 2024 was ₦2.310 trillion, out of which N84.780 billion was deducted for collection costs, while N801.175 billion was allocated for transfers, interventions, and refunds.
The gross statutory revenue for December 2024 stood at ₦1.226 trillion, which represents a decline of N600.988 billion from the ₦1.827 trillion recorded in November 2024. In contrast, VAT collections increased, with December 2024 gross revenue at N649.561 billion, exceeding November 2024’s ₦628.973 billion by N20.588 billion.
From the total distributable revenue of ₦1.424 trillion, the Federal Government received ₦451.193 billion, State Governments received ₦498.498 billion, and Local Government Councils received ₦361.754 billion. An additional ₦113.477 billion, representing 13 percent derivation revenue, was shared among the oil-producing states.
Out of the ₦386.124 billion distributable statutory revenue, the Federal Government received ₦167.690 billion, State Governments received ₦85.055 billion, and Local Government Councils received N65.574 billion, with ₦67.806 billion allocated to oil-producing states as derivation revenue. For the ₦604.872 billion distributable VAT revenue, the Federal Government received ₦90.731 billion, State Governments received ₦302.436 billion, and Local Government Councils received ₦211.705 billion.
From the ₦31.211 billion Electronic Money Transfer Levy (EMTL), the Federal Government received ₦4.682 billion, State Governments received ₦15.605 billion, and Local Government Councils received ₦10.924 billion. Additionally, the ₦402.714 billion exchange difference revenue was shared with the Federal Government receiving N188.090 billion, State Governments receiving ₦95.402 billion, and Local Government Councils receiving ₦73.551 billion, while oil-producing states were allocated ₦45.671 billion as derivation revenue.
The communiqué noted that while there was a significant increase in VAT and EMTL collections, revenues from Oil and Gas Royalty, CET Levies, Excise Duty, Import Duty, Petroleum Profit Tax (PPT), and Companies Income Tax (CIT) experienced considerable declines.
The FAAC reiterated its commitment to ensuring equitable and transparent revenue sharing among all tiers of government to foster economic growth and development.
Credit: thenationonlineng.net