- Foreign exchange gain drives revenue by 67% as VAT drops by 14%
The Federal Government, States and the 774 Local governments across Nigeria have so far received N3.74 trillion as statutory revenue from the Federation Account Allocation Committee in 2024.
The amount of revenue shared in January and February by the three tiers of the executive arm of government will finance 13.6 percent of the N27.5 trillion budget estimate of ‘Renewed Hope’ for 2024.
Revenue shared by FAAC increased by 23.95 percent in the review period, indicating increasing income from the various revenue sources of the government.
The Federal Government in its budget estimate for 2024 hopes to generate N18.32 trillion as revenue while proposed expenditure stands at N27.5 trillion, leaving a deficit of N9.18 trillion.
A breakdown of revenue sources showed that the Statutory Account and Exchange Gain were key drivers of revenue for the government in both months.
For instance, revenue shared from the Statutory Account stood at N2.03 trillion, rising by 31.4 percent while Exchange Gain increased by 67 percent from N287.74 billion in January to N479.03 billion in February.
On the other hand, revenue from the Value Added Tax dropped by more than 14 percent from about N492 billion in January to N421 billion in February.
On a month on month basis, FAAC disbursed the sum of N1.67 trillion to the three tiers of government in January 2024 from the total revenue generated in December 2023.
The amount disbursed comprised N875.38 billion recorded from the Statutory Account, N287.74 billion from Exchange Gain, N18.60 billion from Electronic Money Transfer Levy (EMTL), and N492.51 billion from Value Added Tax.
“Revenue shared by FAAC increased by 23.95 percent in the review period, indicating increasing income from the various revenue sources of the government.”
The allocations to the three tiers of government for December 2023 showed that the Federal Government received a total of N383.87 billion; States got a total of N396.69 billion, while Local Governments received a total of N288.93 billion.
The sum of N57.92 billion was shared among the oil-producing states from the 13 percent derivation fund.
The revenue generating agencies comprising Nigeria Customs Service, Federal Inland Revenue Service, and Nigerian Upstream Petroleum Regulatory Commission received N16.07 billion, N36.09 billion, and N9.35 billion respectively, as cost of revenue collections.
Further breakdown of revenue allocation distribution to the Federal Government of Nigeria revealed that N257.85 billion was disbursed to the FGN consolidated revenue account, N5.93 billion was received as a share of derivation and ecology, N2.97 billion as stabilization fund, N9.96 billion for the development of natural resources, and N10.60 billion to the Federal Capital Territory, Abuja.
In February, FAAC disbursed the sum of N2.07 trillion to the three tiers of government in February 2024 from the total revenue generated in January 2024.
The amount disbursed comprised N1.15 trillion recorded from the Statutory Account, N479.03 billion from Exchange Gain, N16.59 million from Electronic Money Transfer Levy, and N420.73 billion from Value Added Tax.
The Federal Government received a total of N407.27 billion; States got a total of N379.41 billion, and Local Governments, a total of N278.04 billion.
The sum of N85.10 billion was shared among the oil-producing states from the 13 percent derivation fund. The revenue generating agencies comprising Nigeria Customs Service, Federal Inland Revenue Service, and Nigerian Upstream Petroleum Regulatory Commission received N16.27 billion, N43.35 billion, and N18.68 billion respectively; as cost of revenue collections.
Further breakdown of revenue allocation distribution to the Federal Government of Nigeria revealed that N279.06 billion was disbursed to the FGN consolidated revenue account, N6.57 billion was received as a share of derivation and ecology, N3.29 billion as stabilization fund, N11.04 billion for the development of natural resources, and N10.37 billion to the Federal Capital Territory.
