By Ojukwu Emmanuel Chiadikaobi
In a recent announcement by the Federation Account Allocation Committee (FAAC), the total distributable revenue for December 2023 reached an impressive N1.13 trillion, showcasing a notable surge from the N1.08 trillion allocated to the FG, the states and LG’s.
Chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein, the FAAC disclosed in its communique after the January 2024 meeting that the substantial revenue comprised distributable statutory revenue of N363.188 billion, distributable Value Added Tax (VAT) revenue of N458.622 billion, Electronic Money Transfer Levy revenue of N17.855 billion, and Exchange Difference revenue of N287.743 billion.
Notably, the communique highlighted a derivation revenue of N57.92 billion (13% of mineral revenue) allocated to benefiting states. The total revenue available in December 2023 was reported at N1,674.230 billion.
The FAAC attributed the increased revenue to the removal of subsidies and the unification of the country’s exchange rate, resulting in a more favorable fiscal environment. The statement noted, “Total deductions for cost of collection were N62.254 billion, and total transfers, interventions, and refunds amounted to N484.568 billion.”
Breaking down the distribution, the Federal Government received N383.872 billion, State Governments received N396.693 billion, and Local Government Councils received N288.928 billion from the total distributable revenue. Additionally, N57.915 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
The breakdown of distributable statutory revenue included N173.729 billion for the Federal Government, N88.118 billion for State Governments, and N67.935 billion for Local Government Councils. A sum of N33.406 billion (13% of mineral revenue) was also shared with benefiting states as derivation revenue.
From the distributable VAT revenue of N458.622 billion, the Federal Government received N68.793 billion, State Governments received N229.311 billion, and Local Government Councils received N160.518 billion. Additionally, the N17.855 billion Electronic Money Transfer Levy was shared among the entities.
The FAAC noted changes in various revenue streams, mentioning significant increases in Companies Income Tax, Excise Duty, Petroleum Profit Tax, VAT, and Electronic Money Transfer Levy. However, Oil and Gas Royalties saw a substantial decrease, while Import Duty and CET Levies decreased marginally.
The statement concluded with the revelation that the balance in the Excess Crude Account (ECA) stood at $473,754.57, providing a comprehensive overview of the financial landscape for December 2023.