Paragraph 1: December 2024 Federation Account Revenue Distribution Overview
In December 2024, a total of N1.424 trillion from the Federation Account was distributed among the Federal Government, state governments, and Local Government Councils (LGCs). This distribution, facilitated by the Federation Account Allocation Committee (FAAC), encompassed various revenue streams, including statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange difference revenue. The allocated amounts reflect the complex interplay of revenue generation, cost deductions, and specific disbursement mechanisms established within Nigeria’s fiscal framework.
Paragraph 2: Composition of the Distributable Revenue
The N1.424 trillion distributable revenue represents the net amount after deductions from the gross revenue generated in December 2024. The total gross revenue for the month stood at N2.310 trillion. Deductions totaling N885.955 billion were made for cost of collection (N84.780 billion) and transfers, interventions, and refunds (N801.175 billion). This highlights the significant operational costs and dedicated allocations inherent in managing and distributing the nation’s revenue resources. The remaining N1.424 trillion was then shared according to the established formula among the three tiers of government.
Paragraph 3: Breakdown of Revenue Sources and Allocation
The N1.424 trillion distributable revenue was derived from various sources. Statutory revenue contributed N386.124 billion, while VAT generated a substantially larger portion, amounting to N604.872 billion. The relatively newer EMTL provided N31.211 billion, and exchange difference revenue added N402.714 billion. The specific allocation from each revenue stream followed a predefined formula, ensuring each tier of government received its designated share. For instance, the Federal Government received N167.690 billion from statutory revenue, while states received N85.055 billion, LGCs N65.574 billion, and derivation revenue for benefiting states totaled N67.806 billion.
Paragraph 4: Revenue Fluctuations and Performance Analysis
A comparison with November 2024 figures reveals significant fluctuations in revenue streams. Gross statutory revenue experienced a substantial decline, dropping by N600.988 billion from N1.827 trillion in November to N1.226 trillion in December. Conversely, VAT revenue showed positive growth, increasing by N20.588 billion from N628.973 billion in November to N649.561 billion in December. These fluctuations highlight the volatility inherent in revenue generation, particularly from oil-related sources, emphasizing the need for diversified revenue streams and prudent fiscal management.
Paragraph 5: Detailed Allocation to Each Tier of Government
From the total distributable revenue of N1.424 trillion, the Federal Government received N451.193 billion. State governments received a combined total of N498.498 billion, while LGCs received N361.754 billion. Benefiting states also received a significant portion as derivation revenue, amounting to N113.477 billion, representing 13% of mineral revenue. This allocation structure aims to distribute resources across the different levels of government, ensuring that funds are available for providing services and executing development projects across the nation.
Paragraph 6: Specific Revenue Stream Allocations and Performance
Further details on the allocation from each revenue stream reveal the specific amounts received by each tier of government. From VAT revenue, the Federal Government received N90.731 billion, states received N302.436 billion, and LGCs received N211.705 billion. From the EMTL, the Federal Government received N4.682 billion, states received N15.605 billion, and LGCs received N10.924 billion. Notably, VAT and EMTL collections saw significant increases in December 2024, while oil and gas royalties, customs and excise tariff levies, excise duty, import duty, petroleum profit tax, and companies income tax experienced considerable decreases. This performance underscores the evolving dynamics of revenue generation and the potential of non-oil revenue sources.
