In December 2023, the Federation Account Allocation Committee (FAAC) distributed a total of N1.13 trillion in earnings to the Federal Government, States, and Local Government Councils, marking a significant increase of N500 billion compared to the N1.08 trillion shared in November. The allocation included various revenue sources such as statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy, and Exchange Difference revenue.
According to the communique issued after the January 2024 FAAC meeting, chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein, the total distributable revenue comprised distributable statutory revenue of N363.188 billion, distributable VAT revenue of N458.622 billion, Electronic Money Transfer Levy revenue of N17.855 billion, and Exchange Difference revenue of N287.743 billion. Additionally, N57.92 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
The gross statutory revenue for December 2023 was N875.382 billion, slightly lower than November’s N882.560 billion. However, the gross revenue from VAT increased to N492.506 billion, up by N132.1 billion compared to November.
From the total distributable revenue of N1.13 trillion, the Federal Government received N383.872 billion, State Governments received N396.693 billion, and Local Government Councils received N288.928 billion. Derivation revenue of N57.915 billion (13% of mineral revenue) was also shared with the benefiting states.
The breakdown of the distributable statutory revenue showed that the Federal Government received N173.729 billion, State Governments received N88.118 billion, and Local Government Councils received N67.935 billion. Additionally, N33.406 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
The FAAC highlighted the increase in Companies Income Tax, Excise Duty, Petroleum Profit Tax, VAT, and Electronic Money Transfer Levy, while Oil and Gas Royalties decreased substantially. Import Duty and CET Levies decreased marginally.
The balance in the Excess Crude Account (ECA) was reported as $473,754.57 at the end of December 2023.
