Federation Account Allocation Committee Announces N1.13 Trillion Distribution in December 2023

  Federation Account Allocation Committee Announces N1.13 Trillion Distribution in December 2023

In a recent development, the Federation Account Allocation Committee (FAAC) disclosed that it disbursed a total of N1.13 trillion in earnings for December 2023, with allocations made to the Federal Government, States, and Local Government Councils. This marked a notable increase of N500 billion compared to the N1.08 trillion shared in November.

According to the communique issued after the January 2024 meeting, chaired by Dr. Oluwatoyin Madein, the Accountant General of the Federation, the N1.13 trillion total distributable revenue included statutory revenue of N363.188 billion, 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.

Madein highlighted that N57.92 billion, equivalent to 13% of mineral revenue, was distributed to the benefiting States as derivation revenue. The total revenue available for December 2023 was reported to be N1,674.230 billion.

The increase in revenue was attributed to the removal of subsidies and the unification of the country's exchange rate by the current administration, leading to a boost in the federation account's earnings.

The statement revealed further details, stating, "Total deductions for the cost of collection were N62.254 billion, while total transfers, interventions, and refunds amounted to N484.568 billion." The gross statutory revenue for December 2023 was N875.382 billion, slightly lower than the N882.560 billion received in November.

In terms of VAT, the gross revenue available in December was N492.506 billion, representing a significant increase of N132.1 billion compared to November's N360.455 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 of N1,127.408 billion.

The communique also specified the allocations from each revenue source, including distributable statutory revenue, VAT revenue, Electronic Money Transfer Levy, and Exchange Difference revenue.

However, FAAC noted some fluctuations in various tax revenues, with Companies Income Tax, Excise Duty, Petroleum Profit Tax, VAT, and Electronic Money Transfer Levy experiencing significant increases, while Oil and Gas Royalties decreased substantially. Import Duty and CET Levies saw a marginal decrease.

The statement concluded by indicating that the balance in the Excess Crude Account (ECA) stood at $473,754.57 as of the end of December 2023.