FAAC Revenue Declines by N303bn in December
The Federal Government, states, and local government councils shared a total of N1.424 trillion as revenue for December 2024, marking a significant decline from the N1.727 trillion shared in November 2024. This decrease of N303 billion represents a 17.54% drop from the previous month.
According to a press statement on Friday by the Director, Press and Public Relations, at the Office of the Accountant General of the Federation, Bawa Mokwa, the allocation was decided at the Federation Account Allocation Committee meeting held in Abuja on Friday.
The statement read, “A total sum of N 1.424tn, being December 2024 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”
A communiqué issued after the meeting revealed that the total distributable revenue consisted of N386.124bn from statutory revenue, N604.872bn from Value Added Tax, N31.211bn from the Electronic Money Transfer Levy, and N402.714bn from Exchange Difference revenue.
The total gross revenue available for December 2024 was N2.310tn, which is higher than the N1.827tn recorded in the previous month.
Out of this, N84.780bn was deducted as the cost of collection, while N801.175bn was allocated for transfers, interventions, and refunds.
The communiqué further disclosed that gross statutory revenue for December stood at N1.226tn, a decline of N600.988bn from the N1.827tn received in November.
Meanwhile, VAT revenue increased by N20.588bn, reaching N649.561bn in December, compared to N628.973bn in November.
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From the total distributable revenue of N1.424tn, the Federal Government received N451.193bn, while the States and Local Government Councils received N498.498bn and N361.754bn, respectively.
Also, N113.477bn, representing 13 per cent of mineral revenue, was allocated to the benefiting states as derivation revenue.
The Federal Government’s share from the N386.124bn statutory revenue amounted to N167.690bn, with the States receiving N85.055bn and Local Government Councils N65.574bn.
The sum of N67.806bn from statutory allocations was also shared as derivation revenue.
Revenue from VAT contributed N604.872bn to the total distribution.
Of this, the Federal Government received N90.731bn, while the States and Local Government Councils received N302.436bn and N211.705bn, respectively.
The Electronic Money Transfer Levy generated N31.211bn, of which N4.682bn went to the Federal Government, N15.605bn to the States, and N10.924bn to Local Government Councils.
Exchange Difference revenue contributed N402.714bn, with the Federal Government receiving N188.090bn, the States N95.402bn, and Local Government Councils N73.551bn.
Benefiting states also received N45.671bn, representing 13 per cent of mineral revenue.
The communiqué noted a significant increase in VAT and Electronic Money Transfer Levy revenue for December 2024.
However, collections from Oil and Gas Royalty, CET Levies, Excise Duty, Import Duty, Petroleum Profit Tax, and Companies Income Tax witnessed considerable declines.
Speaking on Friday about whether direct payment has been made to local government councils, Bawa said that it had yet to be implemented.
He added that there is yet to be an established structure for the direct payment to local government councils, and the process is ongoing.
This means that the revenue allocated to local government from December earnings was paid into states’ accounts.
