Federation Account Sees Significant Increase in Revenue, Over N7 Trillion Collected in Six Months

The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has announced a substantial increase in revenue collection for the Federation Account. A total of N7.31 trillion was accrued between July and December 2023, reflecting a positive trend compared to the N5.244 trillion collected in the first half of the year.

Highlights from RMAFC Report

• The RMAFC Chairman, Mr. Mohammed Bello Shehu, presented the findings in a press statement.
• The total revenue includes N1.692 trillion transferred to the Exchange Gain Differential Account, leaving a balance of N5.475 billion for distribution.
• Statutory deductions by the Office of the Accountant General of the Federation (OAGF) amounted to N3.26 trillion, resulting in a net balance of N2.2 trillion distributed to the three tiers of government (federal, state, and local) during the period.
• An additional N2.251 trillion was transferred to the Non-Oil Excess Account as savings, bringing the net statutory deductions down to N1.016 trillion before further adjustments for sharing among the three tiers of government.
• When combined with these adjustments, a total net sum of N4 trillion was shared with the three tiers of government, exceeding the N3.06 trillion distributed in the first half of the year.

Increased Statutory Deductions

The report also highlights a rise in statutory deductions as a percentage of total revenue. The second half of 2023 saw deductions accounting for 44.12% of total inflows, compared to 42.31% in the first half (including transfers to the Non-Oil Excess Account).

Improved Remittances from Revenue Agencies

The RMAFC Chairman noted positive developments in remittances from key revenue-generating agencies. The Nigerian National Petroleum Company Limited (NNPCL) contributed N874.64 billion in the second half, compared to zero remittance in the first half. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted N1.56 trillion, while the Federal Inland Revenue Service (FIRS) contributed N3.65 trillion.

Positive Outlook

The significant increase in revenue collection for the Federation Account points towards a potentially stronger financial year for the Nigerian government. This could translate into increased funding for government projects and programs across the country.