The Federation Account Allocation Committee (FAAC) has distributed a total of N1.424 trillion to the federal government, state governments, and local government councils as federation allocation for December 2024. This was revealed in a communiqué issued by Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance, following a FAAC meeting held on Friday in Abuja.
The meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed that the allocation was derived from a gross revenue of N2.310 trillion. Of the distributable amount, the federal government received N451.193 billion, while states and local governments were allocated N498.498 billion and N361.754 billion, respectively. Additionally, oil-producing states were granted N113.477 billion as 13% derivation revenue.
The communiqué detailed other allocations, including N84.780 billion for the cost of revenue collection and N801.175 billion for transfers, interventions, and refunds.
Statutory revenue for December stood at N1.226 trillion, reflecting a decline of N6.988 billion from the N1.827 trillion recorded in November. After deductions of N57.498 billion for collection costs and N782.468 billion for transfers and interventions, the remaining N386.124 billion was shared. The federal government received N167.690 billion, states were allocated N85.055 billion, local councils received N65.574 billion, and oil-producing states received N67.806 billion in derivation revenue.
Value Added Tax (VAT) collections contributed N649.561 billion, marking an increase of N20.588 billion compared to the N628.973 billion recorded in November. After deductions of N25.982 billion for collection costs and N18.707 billion for interventions, a distributable balance of N604.872 billion remained. From this, the federal government received N90.731 billion, states N302.436 billion, and local councils N211.705 billion.
Revenue from the Electronic Money Transfer Levy (EMTL) amounted to N31.211 billion, with N1.300 billion deducted for collection costs. The remaining N29.911 billion was distributed among the tiers of government, with the federal government receiving N4.682 billion, states N15.605 billion, and local councils N10.924 billion.
An additional N402.714 billion was shared from exchange difference revenue, with the federal government receiving N188.090 billion, states N95.402 billion, local councils N73.551 billion, and oil-producing states N45.671 billion in derivation revenue.
The communiqué highlighted significant increases in revenue from VAT and EMTL, which helped cushion declines in Oil and Gas Royalty, CET Levies, Excise Duty, Import Duty, Petroleum Profit Tax, and Companies Income Tax.
The total distributable revenue for December 2024 included N386.124 billion from statutory sources, N604.872 billion from VAT, N31.211 billion from EMTL, and N402.714 billion from exchange differences, reflecting the ongoing challenges in statutory revenue and the growing reliance on non-oil revenue streams to sustain public finances.
