In October 2024, the Federal Government, along with state and local governments, officially shared a substantial sum of N1.298 trillion that was generated in September. This figure represented an increase of 7.9% compared to the N1.203 trillion allocated the previous month. The announcement was made by Bawa Mokwa, the Director of Press and Public Relations at the Office of the Accountant-General of the Federation. The allocation was determined during a meeting held by the Federation Accounts Allocation Committee (FAAC) in Abuja, where the distribution of national revenue is organized and communicated to various levels of government.
The total distributable amount of N1.298 trillion was sourced from various revenue streams that were registered in September, which included N124.716 billion from distributable statutory revenue, N543.518 billion from Value Added Tax (VAT), N18.445 billion from the Electronic Money Transfer Levy, and N462.191 billion stemming from exchange differences. Additionally, an augmentation of N150 billion was factored into this distribution. After deducting collection costs amounting to N80.993 billion and N878.946 billion designated for transfers, interventions, and refunds, the net distributable revenue remained positioned at N1.298 trillion.
Following the distribution, the Federal Government’s allocation was N424.867 billion, while state governments received N453.724 billion, and local government councils got N329.864 billion. It was also noted that N90.415 billion, which reflects a 13% allocation of mineral revenue, was specifically designated for oil-producing states. This structured distribution underscores the government’s ongoing commitment to equitable revenue sharing among various levels of administration and highlights the importance of fiscal collaboration in promoting regional development.
For statutory revenue specifically, the Federal Government received N43.037 billion, whereas state governments were allocated N21.829 billion, and local governments got N16.829 billion. Additionally, oil-producing states received N43.021 billion as part of their 13% derivation. In terms of VAT revenue, which totaled N543.518 billion, the Federal Government’s share was N81.528 billion, states acquired N271.759 billion, and local governments collected N190.231 billion. These figures reveal the diverse revenue streams that significantly affect the budgeting and expenditure capabilities of each government tier.
The distribution of the Electronic Money Transfer Levy (EMTL), amounting to N18.445 billion, saw allocations where the Federal Government received N2.767 billion, state governments acquired N9.222 billion, and local governments got N6.456 billion. For revenues related to exchange differences, totaling N462.191 billion, the distribution favored the Federal Government with N218.515 billion, states with N110.834 billion, and local governments with N85.448 billion. Oil-producing states also benefited from this allocation, receiving N47.394 billion as part of their 13% derivation on the exchange difference revenue.
The N150 billion augmentation was allocated with N79.020 billion designated for the Federal Government, N40.080 billion for states, and N30.900 billion for local governments. The allocation details articulate the intricate fiscal dynamics present in Nigeria’s governmental structure. The press statement concluded with an overview of revenue trends, indicating that revenue from oil and gas royalties, excise duties, the Electronic Money Transfer Levy, and CET (Common External Tariff) levies showed notable increases, while revenues derived from Value Added Tax and import duties rose only slightly. However, there were significant decreases recorded in Petroleum Profit Tax, Companies Income Tax, and other related incomes, suggesting varying economic influences impacting revenue generation across different sectors.
