The Federation Account Allocation Committee (FAAC) has disbursed N1.152 trillion to the federal, state, and local governments for the month of February 2024, from a gross total revenue of N2,326.14 trillion.
This was disclosed in a statement signed by Mohammed Manga, Director of Press and Public Relations, after the committee’s meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Thursday.
FAAC, responsible for reviewing and adopting the allocation of funds to states and the Federal Government, distributes revenue monthly to all 36 states and 774 local governments in Nigeria, aimed at fueling development and assisting governments at different levels in fulfilling their responsibilities.
According to the statement, the breakdown of the disbursement includes N352.40 billion for the Federal Government, N366.95 billion for the states, N267.15 billion for local government areas, and N166.24 billion as derivation (13 per cent of mineral revenue) for oil-producing states.
Furthermore, N66.45 billion was allocated for the cost of collection, N856.93 billion for transfer intervention and refunds, and N250 billion was saved.
The total revenue distribution for February was drawn from Statutory Revenue of N101.34 billion, VAT of N428.80 billion, N15.15 billion from Electronic Money Transfer Levy (EMTL), and N607.44 billion from Exchange Difference, totaling N1,152.75 trillion.
Regarding VAT revenue, the statement indicated an increase from N420.73 billion in the preceding month to N460.48 billion, with N39.75 billion increase. From this amount, N18.42 billion was allocated for the cost of collection and N13.26 billion for transfers, intervention, and refunds, leaving N428.80 billion distributed to the three tiers of government.
The statement also highlighted increases in Petroleum Profit Tax, Value Added Tax, Import Duty, Excise Duty, and Customs External Tariff levies, while Electronic Money Transfer Levy and Companies Income Tax recorded considerable decreases.
In his opening remarks at the meeting, Minister Wale Edun commended the revenue-generating agencies for their hard work and highlighted government interventions aimed at ensuring rapid and sustained economic growth, including direct payments to about 15 to 17 million poorest and vulnerable Nigerians.
These interventions, he emphasized, are carefully managed to ensure they are fraud-free, utilizing Biometric Registration and Digital Registering systems.
