FG, states, LGAs share N1.424trn December FAAC

Estimated reading time: 3 minutes

The Federal Government (FG), States, and Local Government Councils (LGCs) have shared a total of N1.424 trillion as Federation Allocation for December 2024, drawn from a gross revenue of N2.310 trillion.

The Federation Account Allocation Committee (FAAC) disclosed this in a communiqué issued after its December 2024 meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

The allocation comprised Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference (ED).

The distribution was as follows: FG, N451.193 billion, states, N498.498 billion and Local Government Councils, N361.754 billion—Oil-producing states (13% derivation), N113.477 billion.

Additionally, N84.780 billion was earmarked for collection costs, and N801.175 billion was allocated for transfers, interventions, and refunds.

The gross revenue from VAT for December 2024 stood at N649.561 billion, representing an increase of N20.588 billion compared to the N628.973 billion recorded in November 2024.

From this amount, N25.982 billion was allocated for collection costs, while N18.707 billion was used for transfers, interventions, and refunds.

The remaining N604.872 billion was distributed among the three tiers of government, with the FG receiving N90.731 billion, the States receiving N302.436 billion, and the Local Government Councils receiving N211.705 billion.

The gross statutory revenue for December 2024 stood at N1.226 trillion, reflecting a decrease of N6.988 billion compared to the N1.827 trillion recorded in November 2024.

Following deductions for collection costs amounting to N57.498 billion and allocations for transfers, interventions, and refunds totalling N782.468 billion, the remaining balance of N386.124 billion was distributed among the three tiers of government.

The FG received N167.690 billion, the States were allocated N85.055 billion, and the Local Government Councils got N65.574 billion.

Additionally, N67.806 billion was distributed as derivation revenue to oil-producing states.Revenue from the Electronic Money Transfer Levy (EMTL) for December 2024 totalled N31.211 billion.

Of this amount, the FG received N4.682 billion, States got N15.605 billion, and Local Government Councils were allocated N10.924 billion. Additionally, N1.300 billion was earmarked for collection costs.

The Exchange Difference contributed N402.714 billion to the Federation Account, which was distributed as follows: the FG received N188.090 billion, States received N95.402 billion, Local Government Councils got N73.551 billion, and N45.671 billion was allocated for derivation revenue to oil-producing states.

The communiqué highlighted that while revenues from VAT and EMTL increased significantly, collections from oil and gas royalties, CET levies, excise duties, import duties, petroleum profit tax (PPT), and companies income tax (CIT) recorded a decline.

The total distributable revenue for December 2024 was sourced from statutory revenue (N386.124 billion), VAT (N604.872 billion), EMTL (N31.211 billion), and Exchange Difference (N402.714 billion), bringing the total to N1.424 trillion.