Follow Us on Google
From Adanna Nnamani, Abuja
The Federation Account Allocation Committee (FAAC) has shared a total of N1.96 trillion among the federal government, states and local government councils for December, buoyed largely by a sharp jump in value-added tax (VAT) revenue, even as statutory earnings declined.
Details of the distribution were contained in a communiqué issued by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, following FAAC’s January meeting. The figures were released weeks after the meeting, marking a delay in the publication of the allocation breakdown.
According to the communiqué, the N1.969 trillion total distributable revenue comprised N1.084 trillion from statutory revenue, N846.507 billion from VAT and N38.110 billion generated from the electronic money transfer levy (EMTL).
FAAC disclosed that total gross revenue available in December stood at N2.58 trillion. From this amount, N104.697 billion was deducted as cost of collection, while transfers, refunds and savings accounted for N511.585 billion, leaving the balance for distribution among the three tiers of government.
A closer look at the revenue components showed contrasting trends. Gross statutory revenue for December was put at N1.63 trillion, representing a decline of N105.202 billion compared with the N1.736 trillion recorded in November. In contrast, VAT revenue surged significantly, rising to N913.957 billion from N563.042 billion in the preceding month—an increase of N350.915 billion.
From the total distributable revenue of N1.969 trillion, the federal government received N653.5 billion, state governments shared N706.4 billion, while local government councils got N513.2 billion.
In addition, N96.08 billion was allocated to oil-producing states as 13 per cent derivation revenue.
Breaking down the statutory revenue component, FAAC said N520.8 billion of the N1.084 trillion distributable amount went to the federal government, while states received N264.160 billion. Local governments got N203.656 billion, alongside N96.083 billion paid to benefiting states as derivation revenue.
The VAT pool also delivered sizable inflows to subnational governments. From the N846.507 billion distributable VAT revenue, the federal government received N126.976 billion, state governments shared N423.254 billion, and local governments received N296.277 billion.
Similarly, proceeds from the EMTL were shared across the three tiers. Of the N38.110 billion available, the federal government got N5.71 billion, states received N19.05 billion, and local governments were allocated N13.33 billion.
The December allocation underscores the growing importance of consumption-based taxes in supporting public finances, as volatility continues to affect traditional revenue sources.
