FAAC Allocates N1.123 Trillion for March 2024
The Federation Account Allocation Committee (FAAC) has disbursed a total of N1.123 trillion to the Federal, State, and Local Government Councils for the month of March 2024. This allocation was disclosed in a communique issued at the conclusion of FAAC’s April 2024 meeting.
The distributed revenue of N1.123 trillion comprised various components, including Distributable Statutory Revenue, which amounted to N311.233 billion; Distributable Value Added Tax (VAT) revenue, totaling N511.879 billion; Electronic Money Transfer Levy (EMTL) revenue, standing at N14.754 billion, and Exchange Difference revenue, reaching N285.525 billion.
Although the total distributable revenue for March showed a slight decrease compared to February’s figure of N1.192 trillion, there were notable increases in certain areas. VAT revenue saw a significant rise, with gross revenue amounting to N549.698 billion, marking an increase of N89.210 billion from February’s figure of N460.488 billion. This uptick suggests heightened economic activity, particularly in sectors contributing to VAT generation.
On the other hand, gross statutory revenue for March 2024 was recorded at N1.017 trillion, slightly lower than the N1.192 trillion received in February. The communique did not provide specific reasons for this decline. Additionally, Electronic Money Transfer Levy (EMTL) revenue experienced a slight dip compared to the previous month.
The allocation of the N1.123 trillion was distributed among the tiers of government as follows: the Federal Government received N345.890 billion, State Governments obtained N398.689 billion, and Local Government Councils were allocated N288.688 billion. Furthermore, a total of N90.124 billion (13 percent of mineral revenue) was shared among the benefiting States as derivation revenue.
A detailed breakdown of the distribution by revenue source revealed the allocation to each tier of government, with specific amounts allocated to Statutory Revenue, VAT revenue, EMTL revenue, and Exchange Difference revenue.
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The communique also highlighted fluctuations in various revenue sources, including increases in Import Duty, VAT, Gas Royalty, and Company Income Tax (CIT), alongside decreases in Excise Duty, Oil Royalty, Petroleum Profit Tax (PPT), Electronic Money Transfer Levy (EMTL), and Customs and Excise Tariff (CET) Levies.
Furthermore, the report disclosed that the balance in the Excess Crude Account (ECA) stood at $473,754.57 as of March 2024.
The FAAC disbursement report serves as a crucial indicator of Nigeria’s revenue generation and allocation trends. While there was a slight dip in overall collections for March compared to February, the significant increase in VAT revenue signifies positive economic momentum. The detailed breakdown provided by the communique enhances transparency and understanding of resource distribution across government levels.
Source: The Nation
