FAAC disbursed N1.2 trillion revenue to Federal, State and LGs
In April 2024, the Federation Account Allocation Committee (FAAC) disbursed N1.21 trillion to Nigeria’s three tiers of government from a total of N2.19 trillion. The distribution comprised N390.41 billion for the Federal Government, N403.40 billion for state governments, and N293.82 billion for local governments, with oil-producing states receiving N120.45 billion (13% derivation revenue).
Moreover, N80.52 billion was set aside for collection costs, while N903.48 billion was designated for transfers, interventions, and refunds. The gross revenue for April included N1.23 trillion from statutory revenue, marking an increase of N216.28 billion compared to March’s N1.02 trillion.
Value Added Tax (VAT) contributed N500.92 billion, showing a decrease of N48.78 billion from the previous month. From the VAT revenue, N466.46 billion was distributed after deductions for collection costs and transfers, with the Federal Government receiving N69.969 billion; states, N233.23 billion, and local governments, N163.260 billion.
The Electronic Money Transfer Levy (EMTL) added N18.024 billion, distributed as N2.704 billion to the Federal Government, N9.012 billion to states, and N6.308 billion to local governments. The rise in revenue was attributed to oil and gas royalties, Companies’ Income Tax (CIT), excise duties, Petroleum Profit Tax (PPT), and Customs External Tariffs.
However, the import duty and VAT components experienced a decline. FAAC allocations have been increasing over the past year due to the elimination of fuel subsidies. Therefore, apart from the savings resulting from subsidy removal, the government should enhance tax administration to enhance its revenue, possibly through the digitalization of tax payment processes.
