Government Gets Extra N10 Billion As FAAC Distributes N1.15 Trillion To Federal, States, LGAs For February 2024

The amount gotten by the three tiers of government from the Federation Account Allocation Committee (FAAC), went up by N10 billion for the month of February 2024.

Naija News reports the federal, state, and local governments got a collective sum of N1.15 trillion for the period under review.

This was disclosed in a communique issued by FAAC on Thursday during its March meeting, which was chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

According to the communiqué, the N1.15 trillion total distributable revenue comprised distributable statutory revenue of N101.34 billion, distributable value-added tax (VAT) revenue of N428.80 billion, electronic money transfer levy (EMTL) revenue of N15.15 billion and exchange difference revenue of N607.44 billion.

“Total revenue of ₦2,326.149 billion was available in the month of February 2024. Total deduction for cost of collection was N66.456 billion; total transfers, interventions and refunds was N856.937 billion and savings was N250.000 billion,” FAAC said.

“Gross statutory revenue of ₦1,192.428 billion was received for the month of February 2024. This was higher than the sum of ₦1,151.808 billion received in the month of January 2024 by N40.620 billion.

“The gross revenue available from the Value Added Tax (VAT) in February 2024 was N460.487 billion. This was higher than the N420.733 billion available in the month of January 2024 by N39.755 billion,” the communique said.

The FAAC communique further explained that out of the N1.15 trillion total distributable revenue, the federal government was given N352.40 billion, the state governments received N366.95 billion and the local governments got N267.15 billion.

Also, the committee said a total sum of N166.24 billion was distributed to relevant states as 13 percent derivation revenue.

“From the N101.349 billion distributable statutory revenue, the Federal Government received N7.351 billion, the State Governments received N3.729 billion and the Local Government Councils received N2.875 billion. The sum of N87.394 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue,” FAAC said.

“The Federal Government received N64.321 billion, the State Governments received N214.403 billion and the Local Government Councils received N150.082 billion from the N428.806 billion distributable Value Added Tax (VAT) revenue.”

FAAC said from the N15.15 billion EMTL, the federal government got N2.27 billion; the state governments were given N7.57 billion; and the local governments received N5.30 billion.

Meanwhile, out of the N607.44 billion exchange difference revenue, FAAC said the federal government received N278.46 billion, the state Governments got N141.24 billion, and the local government received N108.89 billion; while N78.85 billion was shared to benefiting states as 13 percent derivation revenue.

Furthermore, the committee said in February 2024, petroleum profit tax (PPT), import duty, excise duty, VAT and CET levies increased significantly.

According to the communique, while oil and gas royalties increased marginally, companies income tax (CIT) and EMTL recorded considerable decreases.

FAAC noted that the balance in the excess crude account (ECA) amounted to $473,754.57.