The Federation Account Allocation Committee (FAAC) has announced the distribution of N1.123 trillion to various levels of government for March 2024 from various revenue sources, including statutory allocations, value added tax (VAT), and electronic money transfer levies (EMTL).
According to a statement from the Office of the Accountant General signed by its Director (Press and Public Relations), Bawa Mokwa, the Federal Government secured N345.890 billion, while state governments received N398.689 billion. Local government councils took home N288.688 billion.
The total distributable revenue comprised N311.233 billion from distributable statutory revenue, N511.879 billion from VAT, N14.754 billion from the EMTL, and N285.525 billion from exchange difference revenue. Additionally, the states benefited from N90.124 billion as derivation revenue, representing 13% of mineral revenue.
Breakdown on revenue sources and distribution
- March’s gross statutory revenue was reported at N1.017 trillion, which saw a decrease from February’s N1.192 trillion by N175.212 billion. Conversely, VAT revenue experienced an increase, with N549.698 billion collected compared to N460.488 billion in the previous month, an increase of N89.210 billion.
- From the statutory revenue, the Federal Government received N133.960 billion, the states got N67.946 billion, and local government councils, N52.384 billion. The derivation revenue from statutory sources was N56.943 billion. In terms of VAT distribution, the Federal Government got N76.782 billion, states received N255.940 billion, and local government councils, N179.158 billion.
- The EMTL was divided with the Federal Government receiving N2.213 billion, states got N7.377 billion, and local government councils went home with N5.164 billion. The exchange difference revenue provided the Federal Government with N132.935 billion, the states with N67.426 billion, and local government councils with N51.983 billion.
Only 60% of revenue made was shared among three tiers of government
The total revenue available in March 2024 was N1.868 trillion, after accounting for costs of collection (N69.537 billion) and transfers, interventions, and refunds (N674.880 billion). This means that the three tiers of government got about 60.12% of the total revenue made in March 2024.
The performance of revenue-generating activities was mixed, with increases noted in import duty, VAT, gas royalty, and companies’ income tax, while excise duty, oil royalty, petroleum profit tax, and other levies saw decreases.
The balance in the Excess Crude Account (ECA) stood at $473,754.57 at the end of March 2024. This balance is a crucial part of Nigeria’s financial reserves, serving as a buffer against economic fluctuations driven by oil price volatility.
