FAAC Allocates N1.78 Trillion Revenue: A Comprehensive Overview

FAAC Allocates N1.78 Trillion Revenue: A Comprehensive Overview
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FAAC Allocates N1.78 Trillion Revenue: A Comprehensive Overview

The Federation Account Allocation Committee (FAAC) has concluded its December 2023 meeting, announcing the distribution of a substantial sum of N1.783 trillion from the revenue generated in November 2023. This allocation is set to benefit the federal, state, and local governments across Nigeria, providing a crucial financial influx for public services and developmental initiatives.

Breakdown of the N1.783 Trillion Revenue

The detailed breakdown of the total distributable revenue reveals a multifaceted composition:

  1. Distributable Statutory Revenue: N376.306 billion
  2. Distributable Value Added Tax (VAT) Revenue: N335.656 billion
  3. Electronic Money Transfer Levy Revenue: N11.952 billion
  4. Exchange Difference Revenue: N364.869 billion

The communique issued by FAAC outlines that the total revenue available in November 2023 was N1.6 trillion. Deductions for the cost of collections amounted to N60.960 billion, while transfers, interventions, and refunds summed up to N470.592 billion.

Notable Revenue Increases

  1. Gross Statutory Revenue: The gross statutory revenue for November 2023 stood at N882.560 billion, reflecting a significant increase from the N660.090 billion recorded in October 2023—an upward surge of N222.470 billion.
  2. VAT Revenue: November 2023 witnessed a rise in VAT revenue, totaling N360.455 billion compared to the N347.343 billion in October 2023—an increase of N13.112 billion.

Allocations to Government Tiers

From the total distributable revenue of N1.783 trillion, the allocations to different tiers of government are as follows:

  • Federal Government: N402.867 billion
  • State Governments: N351.697 billion
  • Local Government Areas (LGAs): N258.810 billion

Additionally, a sum of N75.410 billion, representing 13% of mineral revenue, was shared with the benefiting states as derivation revenue.

Revenue Sources and Utilization

  1. Distributable Statutory Revenue:
    • Federal Government: N174.908 billion
    • States: N88.716 billion
    • LGAs: N68.396 billion
    • Derivation Revenue to Benefiting States: N44.286 billion
  2. Distributable VAT Revenue:
    • Federal Government: N50.348 billion
    • States: N167.828 billion
    • LGAs: N117.480 billion
  3. Electronic Money Transfer Levy:
    • Federal Government: N1.793 billion
    • States: N5.976 billion
    • LGAs: N4.183 billion
  4. Exchange Difference Revenue:
    • Federal Government: N175.817 billion
    • States: N89.177 billion
    • LGAs: N68.751 billion
    • Derivation Revenue to Benefiting States: N31.124 billion

Revenue Dynamics in November 2023

Various revenue streams, including Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), Oil and Gas Royalties, and Value Added VAT, witnessed considerable increases. However, transfer levies, import duty, and money transfer recorded decreases during this period.

Excess Crude Account Balance

The communique confirmed that the balance in the Excess Crude Account as of now stands at $473,754.57.

In conclusion, the FAAC’s allocation of N1.783 trillion for December reflects a crucial financial injection into the Nigerian economy, providing the necessary resources for government operations and developmental projects. The breakdown of allocations to different tiers ensures a balanced distribution, contributing to the overall economic stability of the nation.

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