FAAC: FG, States, LGCs share N1.142trn February revenue

The Federation Account Allocation Committee (FAAC) has shared a total sum of N1.152trn February revenue to the Federal Government, states and Local Government Councils (LGCs) as allocation for the month of February, 2024 from a gross total of N2.326trn.

The revenue was shared on Thursday at the March meeting of FAAC chaired by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun.

The committee under the chairmanship the Minister of Finance and Co-ordinating Minister of the Economy, Wale Edun made the disbursement at its February 2024 meeting.
A statement signed by the Director of Press and Public Relations in the ministry, Mohammed Manga indicated that the Federal Government received N352.409 Billion, the States received N366.950b the Local Government Councils got N267.153b, while the Oil Producing States received N166.244b as Derivation, (13% of Mineral Revenue).

He pointed out that the stated amount is inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference (ED).
“The sum of N66.456 Billion was given for the cost of collection, N856.937 Billion allocated for Transfers Intervention and Refunds, while the sum of N250.000 Million was saved.
The Communique issued by the Committee at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for February 2024, was N460.487 Billion, which was an increase from the N420.733 Billion distributed in the preceding month, resulting in an increase of N39.755 Billion.

“From that amount, the sum of N18.420 Billion was allocated for the cost of collection and the sum of N13.262 Billion given for Transfers, Intervention and Refunds.
“The remaining sum of N428.806 Billion was distributed to the three tiers of government, of which the Federal Government got N64.321 Billion, the States received N214.403 Billion, Local Government Councils got N150.082 Billion.

According to the statement, the Gross Statutory Revenue of N1,192.428b received in the month was higher than the sum of N1,151.808b received in the previous month of January 2024, N40.620b.
Explaining further he said from that amount, the sum of N47.404b was allocated for the cost of collection, a total sum of N843.675b for Transfers, Intervention and Refunds and a total of N200.000b saved.

“The remaining balance of  N101.349b was distributed as follows to the three tiers of government: Federal Government got the sum of N7.351b, States received N3.729b, while the sum of N87.394 Billion was allocated to LGCs as Derivation (13% Mineral Revenue).

“Also, the sum of N15.789b from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.274b, States got N7.578b, LGCs received N5.305b, while N0.632b was allocated for Cost of Collection.

The Communique also disclosed N657.444b from Exchange Difference was shared with the Federal Government receiving N278.463b, States got N141.240b, while the sum of N108.891b was allocated to LGCs, N78.850b was given for Derivation (13% of Mineral Revenue) and the sum total of N50.000b was saved.

“Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import Duty, Excise Duty and Customs External Tarrif levies (CET) increased significantly, while Oil and Gas Royalties increased marginally.
“Electronic Money Transfer Levy (EMTL) and Companies Income Tax (CIT) recorded considerable decreases.”

According to the Communique, the total revenue distributable for the current month of February 2024, was drawn from Statutory Revenue of N101.349b, Value Added Tax (VAT) of N428.806b, N15.157b from Electronic Money Transfer Levy (EMTL), and N607.444b from Exchange Difference, bringing the total distributable amount for the month to N1.152trn

The balance in the Excess Crude Account (ECA) as at March 2024 stands at $473,754.57.

In his opening remarks at the meeting, Wale Edun said in the fiscal side, there is a move to raise the forex trading.

He pointed out that President Bola Ahmed Tinubu led administration in its avowed determination to achieve and ensure rapid and sustained economic growth in the country has commenced the intervention programme which is a direct payment to about 15 -17 million poorest and vulnerable Nigerians, after carefully making sure that the system is fraud free, using the Biometric Registration and Digital Registering.

He explained that there is an increase in revenue as he commended the revenue generating agencies for their hard work