The Federation Account Allocation Committee (FAAC) convened in October 2024 under the leadership of Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to distribute a total of N1.298 trillion to Nigeria’s three tiers of government for the month of September 2024, sourced from a gross revenue of N2.298 trillion.
The allocation breaks down as follows: the Federal Government received N424.867 billion, States were allocated N453.724 billion, Local Government Councils obtained N329.864 billion, and Oil Producing States received N90.415 billion as Derivation (13% of Mineral Revenue). Additionally, N80.993 billion was set aside for the cost of collection, with N878.946 billion earmarked for Transfers, Interventions, and Refunds.
The communiqué highlighted that the Gross Revenue from Value Added Tax (VAT) amounted to N583.675 billion, showing an increase from N573.341 billion in the prior month. Of this, N543.518 billion was distributed among the three levels of government, including N81.258 billion for the Federal Government, N271.759 billion for States, and N190.231 billion for Local Government Councils.
For the Gross Statutory Revenue, N1.043 trillion was reported, a decrease from N1.221 trillion in August. From this, N862.136 billion was allocated for Transfers and Refunds, leaving N124.718 billion distributed to the three tiers of government: N43.037 billion for the Federal Government, N21.829 billion for States, and N16.829 billion for Local Government Councils.
Additional allocations included N19.213 billion from the Electronic Money Transfer Levy (EMTL) and N462.191 billion from Exchange Difference. The Augmentation of N150 billionllwas shared as well, with the Federal Government receiving N70.020 billion.
While revenues from Oil and Royalty, Excise Duty, and EMTL increased, VAT and Import Duty saw only modest growth, and significant declines were noted in Petroleum Profit Tax (PPT) and Company Income Tax (CIT).
The balance in the Excess Crude Account (ECA) stood at $473.754 million as of October 2024.
Minister Edun, in his opening remarks, reiterated the commitment of the Tinubu administration to policies aimed at enhancing revenue generation and improving the well-being of Nigerians.