By Dele Ogbodo
The Federation Account Allocation Committee (FAAC), at its February 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, shared a total sum of N1,152.756 trillion to the three tiers of government as Federation Allocation for the month of February, 2024 from a gross total of N2,326.149 trillion.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference (ED), the Federal Government received N352.409 billion, the States received N366.950 billion, Local Government Councils got N267.153 billion, while the Oil Producing States received N166.244 billion as Derivation, (13% of Mineral Revenue).
The sum of N66.456 billion was given for the cost of collection, N856.937 billion allocated for Transfers Intervention and Refunds, while the sum of N250.000 million was saved.
The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for February 2024, was N460.487 Billion, which was an increase from the N420.733 Billion distributed in the preceding month, resulting in an increase of N39.755 billion.
From that amount, the sum of N18.420 billion was allocated for the cost of collection and the sum of N13.262 billion given for transfers, intervention and refunds.
The remaining sum of N428.806 billion was distributed to the three tiers of government, of which the Federal Government got N64.321 Billion, the States received N214.403 billion, and Local Government Councils got N150.082 billion.
Accordingly, the gross statutory revenue of N1, 192.428 billion received in the month was higher than the sum of N1, 151.808 billion received in the previous month of January 2024, N40.620 billion.
From that amount, the sum of N47.404 billion was allocated for the cost of collection, a total sum of N843.675 billion for Transfers, Intervention and Refunds and a total of N200.000 Billion saved.
In a statement signed by the Director, Press and Public Relations in the Ministry, Mr. Mohammed Manga, said the remaining balance of N101.349 billion was distributed as follows: Federal Government got the sum of N7.351 billion, States received N3.729 billion, while the sum of N87.394 billion was allocated to LGCs as Derivation (13% Mineral Revenue).
Also, the sum of N15.789 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.274 Billion, States got N7.578 Billion, and Local Government Councils received N5.305 Billion, while N0.632 Billion was allocated for Cost of Collection.
The Communique also disclosed N657.444 billion from exchange difference, which was shared as follows: Federal Government received N278.463 billion, States got N141.240 billion, while the sum of N108.891 billion was allocated to Local Government Councils, N78.850 billion was given for Derivation (13% of Mineral Revenue) and the sum total of N50.000 billion was saved.
According to the statement, Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import Duty, Excise Duty and Customs External Tarrif levies (CET) increased significantly, while Oil and Gas Royalties increased marginally.
Electronic Money Transfer Levy (EMTL) and Companies Income Tax (CIT) recorded considerable decreases.
According to the Communique, the total revenue distributable for the current month of February 2024, was drawn from Statutory Revenue of N101.349 Billion, Value Added Tax (VAT) of N428.806 Billion, N15.157 billion from Electronic Money Transfer Levy (EMTL), and N607.444 Billion from Exchange Difference, bringing the total distributable amount for the month to N1, 152.756 trillion.
The balance in the Excess Crude Account (ECA) as at March 2024 stands at $473,754.57.
In his opening remarks at the meeting, Minister of Finance and Coordinating Minister of the Economy, said in the fiscal side, there is a move to raise the forex trading.
He informed that President Bola Tinubu led administration in its avowed determination to achieve and ensure rapid and sustained economic growth in the country has commenced the intervention programme which is a direct payment to about 15 -17 million poorest and vulnerable Nigerians, after carefully making sure that the system is fraud free, using the Biometric Registration and Digital Registering.
He explained that there is an increase in revenue, and we are commending the revenue generating agencies for their hard work, he said.