At its October 2024 meeting, the Federation Account Allocation Committee (FAAC), chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, approved the distribution of N1.298 trillion to the three tiers of government. This amount, which was shared from a gross total of N2.298 trillion, marks the allocation for September 2024, and was generated from multiple revenue streams, including Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED), and an augmentation of N150 billion.<\/p>\n
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Out of the total amount, the Federal Government received N424.867 billion, while the States were allocated N453.724 billion. Local Government Councils benefited from N329.864 billion, and oil-producing states received N90.415 billion, representing 13% derivation from mineral revenue. An additional N80.993 billion was set aside for the cost of collection, and N878.946 billion was allocated for transfers, intervention programs, and refunds.<\/p>\n
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Breakdown of September 2024 FAAC Distribution<\/strong><\/p>\n Value Added Tax (VAT) Revenue:<\/p>\n The gross revenue from VAT for September 2024 totaled N583.675 billion, slightly higher than the N573.341 billion distributed in the previous month. From this, N23.347 billion was set aside for the cost of collection, while N16.810 billion went toward transfers, interventions, and refunds. The remaining N543.518 billion was distributed as follows:<\/p>\n <\/p>\n Federal Government: N81.258 billion<\/p>\n State Governments: N271.759 billion<\/p>\n Local Government Councils: N190.231 billion<\/p>\n Gross Statutory Revenue:<\/p>\n The gross statutory revenue for September amounted to N1.043 trillion, which was N177.426 billion lower than the N1.221 trillion collected in August. From this amount, N56.878 billion was earmarked for collection costs, and N862.136 billion went toward transfers, intervention programs, and refunds. The remaining N124.718 billion was shared among the three tiers of government:<\/p>\n <\/p>\n Federal Government: N43.037 billion<\/p>\n State Governments: N21.829 billion<\/p>\n Local Government Councils: N16.829 billion<\/p>\n Derivation (13% to oil-producing states): N43.021 billion<\/p>\n Electronic Money Transfer Levy (EMTL):<\/p>\n The sum of N19.213 billion was collected from the Electronic Money Transfer Levy (EMTL) and distributed among the three tiers of government as follows:<\/p>\n <\/p>\n Federal Government: N2.767 billion<\/p>\n State Governments: N9.222 billion<\/p>\n Local Government Councils: N6.456 billion<\/p>\n Cost of Collection: N0.768 billion<\/p>\n Exchange Difference Revenue:<\/p>\n Revenue from exchange rate differentials amounted to N462.191 billion, which was distributed as follows:<\/p>\n <\/p>\n Federal Government: N218.515 billion<\/p>\n State Governments: N110.834 billion<\/p>\n Local Government Councils: N85.448 billion<\/p>\n Derivation (13% to oil-producing states): N47.394 billion<\/p>\n Augmentation Fund:<\/p>\n An augmentation of N150 billion was also distributed to the three tiers of government:<\/p>\n <\/p>\n Federal Government: N70.020 billion<\/p>\n State Governments: N40.080 billion<\/p>\n Local Government Councils: N30.900 billion<\/p>\n Revenue Performance and Trends<\/strong><\/p>\n The FAAC communique revealed that several revenue streams saw notable increases in September 2024, including oil royalties, excise duties, EMTL, and Common External Tariff (CET) levies. Meanwhile, VAT and import duties registered marginal growth. However, Petroleum Profit Tax (PPT) and Company Income Tax (CIT), two significant revenue sources, experienced a substantial decline. The reduction in PPT and CIT is likely due to a combination of economic factors, including lower global oil prices and reduced corporate earnings, which impacted overall revenue performance.<\/p>\n <\/p>\n Wale Edun, the Chair of the meeting, emphasized the importance of sustaining fiscal discipline and ensuring efficient collection mechanisms for the various levies and taxes that fund the Federation Allocation. He also highlighted the ongoing efforts by the Ministry of Finance to explore new revenue streams and boost non-oil revenues to strengthen the national economy.<\/p>\n","protected":false},"excerpt":{"rendered":" At its October 2024 meeting, the Federation Account Allocation Committee (FAAC), chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, approved the distribution of N1.298 trillion to the three tiers of government. This amount, which was shared from a gross total of N2.298 trillion, marks the allocation for September […]<\/p>\n","protected":false},"author":2,"featured_media":51853,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-52600","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/52600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=52600"}],"version-history":[{"count":1,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/52600\/revisions"}],"predecessor-version":[{"id":52604,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/52600\/revisions\/52604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/51853"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=52600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=52600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=52600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}