The Federation Accounts Allocation Committee, FAAC, has announced the distribution of a total of ₦1.298 trillion among the Federal Government, state governments, and Local Government Councils, LGAs, for the month of September 2024.
This significant allocation was disclosed during FAAC’s October meeting held in Abuja, a gathering that underscored the ongoing financial dynamics within Nigeria’s federal structure.
The communiqué issued by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, disclosed that the total distributable revenue includes various components such as : Statutory Revenue: ₦124.716 billion, Value Added Tax : ₦543.518 billion, Electronic Money Transfer Levy : ₦18.445 billion, Exchange Difference Revenue: ₦462.191 billion, Augmentation: ₦150 billion
The total available revenue for September was reported at ₦2.258 trillion, from which deductions for cost of collection amounted to ₦80.993 billion, while transfers, interventions, and refunds totaled ₦878.946 billion.
From the total distributable revenue of ₦1.298 trillion: the Federal Government received ₦424.867 billion, State Governments were allocated ₦453.724 billion, the Local Government Councils received ₦329.864 billion.
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Additionally, oil-producing states benefited from a derivation revenue of ₦90.415 billion, which represents 13% of mineral revenue. From the statutory revenue, the Federal Government received ₦43.037 billion, states got ₦21.829 billion, and LGAs received ₦16.829 billion. The VAT distribution saw the Federal Government receiving ₦81.528 billion, while states and LGAs received ₦271.759 billion and ₦190.231 billion respectively.
The communiqué highlighted a decline in gross statutory revenue for September 2024, which stood at ₦1.043 trillion, down by ₦177.426 billion from August’s figures of ₦1.221 trillion. However, VAT revenue showed a slight increase, generating ₦583.675 billion, up by ₦10.334 billion compared to August.
Notably, revenues from oil and gas sectors such as royalties and excise duties saw significant increases, while other areas like Petroleum Profit Tax (PPT) and Companies Income Tax experienced declines. This allocation is crucial for funding various governmental functions at all levels, impacting public services and infrastructure development across Nigeria.
The distribution reflects ongoing challenges in revenue generation amid fluctuating economic conditions and highlights the importance of efficient resource management in addressing the needs of citizens In summary, the FAAC’s recent disbursement illustrates both the complexities and necessities of fiscal policy within Nigeria’s multi-tiered governance system as it navigates economic challenges while striving for growth and stability in its financial landscape.
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