The Federation Account Allocation Committee (FAAC) has announced the distribution of a total sum of N1.13 trillion in earnings for December 2023, surpassing the N1.08 trillion allocated to each state in the previous month. This information was disclosed in a communique issued after the January 2024 FAAC meeting, chaired by Dr. Oluwatoyin Madein, the Accountant General of the Federation.

The N1.13 trillion distributable revenue consisted of various components, including distributable statutory revenue (N363.188 billion), distributable Value Added Tax (VAT) revenue (N458.622 billion), Electronic Money Transfer Levy revenue (N17.855 billion), and Exchange Difference revenue (N287.743 billion). Additionally, a sum of N57.92 billion, representing 13% of mineral revenue, was allocated to the benefiting states as derivation revenue.

The communique highlighted that the total available revenue in December 2023 was N1,674.230 billion. This increase in revenue has been attributed to the removal of subsidies and the unification of the country’s exchange rate by the current administration.

Dr. Oluwatoyin Madein, quoted in a statement by Bawa Mokwa, the Director of Press and Public Relations, provided a breakdown of the distribution. The Federal Government received N383.872 billion, State Governments received N396.693 billion, and Local Government Councils received N288.928 billion from the total distributable revenue.

Furthermore, the statement outlined that the gross statutory revenue for December 2023 was N875.382 billion, slightly lower than the N882.560 billion received in November 2023. The gross revenue from VAT in December was N492.506 billion, an increase of N132.1 billion from November 2023.

The breakdown of distributable statutory revenue showed the Federal Government receiving N173.729 billion, State Governments receiving N88.118 billion, and Local Government Councils receiving N67.935 billion. Additionally, N33.406 billion, representing 13% of mineral revenue, was shared with benefiting states as derivation revenue.

The distributable VAT revenue saw the Federal Government receiving N68.793 billion, State Governments receiving N229.311 billion, and Local Government Councils receiving N160.518 billion. Electronic Money Transfer Levy of N17.855 billion was shared, with the Federal Government receiving N2.678 billion, State Governments receiving N8.928 billion, and Local Government Councils receiving N6.249 billion.

Moreover, the Exchange Difference revenue of N287.743 billion resulted in the Federal Government receiving N138.672 billion, State Governments receiving N70.336 billion, and Local Government Councils receiving N54.226 billion. A sum of N24.509 billion, equivalent to 13% of mineral revenue, was distributed to the benefiting states as derivation revenue.

The communique also noted significant increases in Companies Income Tax, Excise Duty, Petroleum Profit Tax, Value Added Tax, and Electronic Money Transfer Levy, while Oil and Gas Royalties decreased substantially. Import Duty and CET Levies experienced marginal decreases.

The statement concluded by revealing that the balance in the Excess Crude Account (ECA) stood at $473,754.57 at the end of December 2023.

END.