In September 2023, the Federation Account Allocation Committee (FAAC) reported a total revenue of N1,594,763 trillion, marking the second instance of higher revenue accrual since the removal of fuel subsidy in May. FAAC disclosed that it approved a disbursement of N903.480 billion from this available revenue to the federal government, states, and local government areas.
The N903.480 billion total distributable revenue consists of various components, including:
- Distributable statutory revenue: N423.012 billion
- Distributable Value Added Tax (VAT) revenue: N282.666 billion
- Electronic money transfer levy revenue: N10.989 billion
In addition to these, there was a revenue of N186.813 billion generated from the exchange difference. The communique issued by FAAC at its October 2023 meeting also noted that various deductions and transfers were made, including N54.426 billion for cost of collection, N347.857 billion for transfers and refunds, and N289.000 billion saved.
Furthermore, the balance in the Excess Crude Account (ECA) was reported to be $473,754.57.
For September 2023, the gross statutory revenue amounted to N1,014,953 billion, which was higher than the N891.934 billion received in August 2023 by N123.019 billion. The gross revenue available from Value Added Tax (VAT) was N303.550 billion, reflecting a decrease from the N345.727 billion available in August 2023 by N42.177 billion.
The distribution of the N903.480 billion total distributable revenue was as follows:
- The Federal Government received N320.543 billion
- State governments received N287.071 billion
- Local Government Councils received N210.900 billion
- A total of N84.966 billion (13% of mineral revenue) was shared with relevant states as derivation revenue.
From the N423.012 billion distributable statutory revenue:
- The federal government received N190.849 billion
- State governments received N96.801 billion
- Local government governments received N74.629 billion
- N60.733 billion (13% of mineral revenue) was shared with relevant states as derivation revenue.
The N282.666 billion distributable VAT revenue was allocated as follows:
- Federal government: N42.400 billion
- State governments: N141.333 billion
- Local government areas: N98.933 billion
Regarding the N10.989 billion electronic money transfer levy revenue:
- The federal government received N1.648 billion
- State governments received N5.495 billion
- Local government areas received N3.846 billion
The N186.813 billion exchange difference revenue was distributed as follows:
- Federal government: N85.647 billion
- States: N43.442 billion
- Local government areas: N33.491 billion
- N24.233 billion (13% of mineral revenue) went to relevant states as derivation revenue.
In terms of revenue sources, petroleum profit tax and oil and gas royalties increased significantly in September 2023. Conversely, VAT, import and excise duties, electronic money transfer levy, companies income tax (CIT), and CET levies recorded notable decreases.
These financial allocations and revenue trends demonstrate the distribution of funds among different tiers of government and the varying contributions of revenue sources.
