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Tag: FAAC

  • FAAC: FG, states, LGs share N1.678trn for February

    FAAC: FG, states, LGs share N1.678trn for February

    The Federation Account Allocation Committee (FAAC), has shared N1.678 trillion among the Federal Government, states and the Local Government Councils (LGCs) for the month of February.

    This is according to a communiqué issued by FAAC and made available by Bawa Mokwa, the Director, Press and Public Relations, Office of the Accountant-General of the Federation (OAGF).

    According to the communiqué, the total revenue of N1.678 trillion comprised statutory revenue of N827.633 billion and Value Added Tax (VAT) revenue of N 609.430 billion.

    It also comprised Electronic Money Transfer Levy (EMTL) revenue of N35.171 billion, Solid Minerals revenue of N28.218 billion and Augmentation of N178 billion.

    It said that a total gross revenue of N2.344 trillion was available in the month of February.

    “Total deduction for cost of collection was N89.092 billion while total transfers, interventions, refunds and savings was N577.097 billion,’” it said.

    The communiqué said that gross statutory revenue of N1.653 trillion was received for the month of February, which was lower than the sum of N1.848 trillion received in January by N194.664 billion.

    It said that gross revenue of N654.456 billion was available from VAT in February, lower than the N771.886 billion available in January by N117.430 billion.

    The communiqué said that from the total distributable revenue of N1.678 trillion, the Federal Government received total sum of N569.656 billion and the state governments received total sum of N562.195 billion.

    It said that the LGCs received total sum of N410.559 billion, and a total sum of N136.042 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

    “On the N827.633 billion statutory revenue, the Federal Government received N366.262 billion and the state governments received N185.773 billion.

    “The LGCs received N143.223 billion and the sum of N132.374 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” the communiqué said.

    It said that from the N609.430 billion VAT revenue, the Federal Government received N91.415 billion, the state governments received N304.715 billion and the LGCs received N213.301 billion.

    “A total sum of N5.276 billion was received by the Federal Government from the N35.171 billion EMTL. The state governments received N17.585 billion and the LGCs received N12.310 billion.

    “From the N28.218 billion Solid Minerals revenue, the Federal Government received N12.933 billion and the state governments received N6.560 billion.

    “The LGCs received N5.057 billion and a total sum of N3.668 billion (13 per cent of mineral revenue) was shared to the benefiting States as derivation revenue,’” it said.

    It said that Oil and Gas Royalty and EMTL, increased significantly while VAT, Petroleum Profit Tax (PPT), Companies Income Tax, Excise Duty, Import Duty and CET Levies recorded decrease.

  • PANDEF urges Supreme Court to reconsider ruling on Rivers State FAAC allocation

    PANDEF urges Supreme Court to reconsider ruling on Rivers State FAAC allocation

    The Pan Niger Delta Forum (PANDEF) has expressed deep concern over the recent ruling by the Supreme Court of Nigeria, which has halted the disbursement of Federation Account Allocation Committee (FAAC) funds to Rivers State. The group warns that this decision could have severe consequences for the state’s citizens, economic stability, and ongoing peace efforts in the Niger Delta region.

    In a statement signed by its National Publicity Secretary, Chief Dr. Obiuwevbi Ominimini, PANDEF emphasized that Rivers State—one of the nation’s key contributors to the oil and gas sector—should not suffer fiscal strangulation due to a political dispute that is “eminently resolvable.” The forum argued that withholding funds essential for economic growth, social welfare, and infrastructure development would disproportionately impact the people of Rivers State.

    While reaffirming its commitment to peace, reconciliation, and conflict resolution, PANDEF called on the Supreme Court to reconsider its decision. The group stressed that fairness, equity, and national unity must guide judicial and political decisions, particularly those affecting the South-South region, which remains crucial to Nigeria’s economic stability.

    The ruling, according to PANDEF, could derail ongoing peace-building efforts, including the Obong Victor Attah-led Peace and Reconciliation Committee, which has made significant progress in fostering stability in Rivers State. The forum urged the Federal Government, political actors, and the judiciary to ensure that governance and economic development take precedence over political rivalries.

    Drawing historical parallels, PANDEF likened the situation to the withholding of local government funds from Lagos State during the tenure of former Governor Bola Ahmed Tinubu by then-President Olusegun Obasanjo. That action, widely condemned both locally and internationally, was seen as a politically motivated move that set a dangerous precedent. The group warned that a similar scenario in Rivers State could have even more dire consequences for peace and security in the Niger Delta.

    PANDEF reaffirmed its unwavering stance on justice, dialogue, and sustainable development, urging all stakeholders to work toward a fair resolution that does not victimize the people of Rivers State.

  • Record N1.7 Trillion Windfall: FAAC Pours Funds into Government Coffers

    Record N1.7 Trillion Windfall: FAAC Pours Funds into Government Coffers

    The Federation Account Allocation Committee (FAAC) has disbursed a staggering N1.703 trillion to the three tiers of government for February 2025, marking a notable increase from the N1.424 trillion distributed in January. This surge in revenue underscores a dynamic shift in Nigeria’s economic landscape, prompting both optimism and careful consideration of its implications.

    “Gross statutory revenue of N1.848 trillion was received for the month of January 2025. This was higher than the sum of N1.226 trillion received in the month of December 2024 by N622.125 billion,” the official communique stated, highlighting the substantial growth in revenue. This jump, while seemingly positive, raises a crucial question: how will these funds be utilized to foster sustainable economic growth and address pressing societal needs?

    Breaking down the disbursement, the federal government received N552.591 billion, state governments received N590.614 billion, and local government councils received N434.567 billion. Additionally, N125.284 billion was allocated as derivation revenue to oil-producing states. This distribution reflects the intricate balancing act of Nigeria’s fiscal federalism, where revenue sharing is a pivotal mechanism for equitable development.

    The surge in revenue is attributed to increases in both statutory revenue and Value Added Tax (VAT). “Gross revenue of N771.886 billion was available from the Value Added Tax (VAT) in January 2025. This was higher than the N649.561 billion available in the month of December 2024 by N122.325 billion,” the communiqué noted. This rise in VAT collection suggests improved economic activity and potentially enhanced tax compliance.

    Read Also: CBN Begins Profiling LGA Officials for Account Opening, Amidst Autonomy Hurdles

    Numbers alone don’t tell the whole story. What this means for the average Nigerian is crucial. Will this influx of funds translate into improved infrastructure, better healthcare, or increased job opportunities? Or will it merely perpetuate existing patterns of expenditure?

    Consider the implications for state and local governments. With increased funds, they are now presented with a critical opportunity to address local needs, improve service delivery, and stimulate economic activity at the grassroots level. But this also implies a heightened responsibility for transparency and accountability. Public trust hinges on the judicious use of these resources.

    The Electronic Money Transfer Levy (EMTL) also contributed to the revenue pool, with N20.548 billion shared among the tiers of government. This growing reliance on digital transactions signals a shift towards a more digitized economy, which, while promising, also requires robust regulatory frameworks to ensure security and efficiency.

    For many, this news brings a glimmer of hope. It represents the potential for improved living standards, better public services, and a more prosperous future. Yet, it also underscores the persistent challenges of economic management and the need for prudent fiscal policies.

    According to the World Bank, effective public financial management is crucial for achieving sustainable development goals. “Strong public financial management systems can help governments allocate resources efficiently, improve service delivery, and promote economic growth.” This sentiment resonates deeply in the context of Nigeria’s current economic climate.

    As we move forward, it is imperative that these funds are utilized strategically to address the nation’s pressing needs and lay the foundation for long-term economic stability. The FAAC disbursement represents not just a financial transaction, but a critical opportunity to shape Nigeria’s future.

  • FAAC Shares ₦1.424 Trillion Federation Account Revenue for December 2024

    FAAC Shares ₦1.424 Trillion Federation Account Revenue for December 2024

    The Federal Government, state governments, and local government councils (LGCs) have shared a total of ₦1.424 trillion from the December 2024 Federation Account Revenue.

    Contents

    This was disclosed by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation (OAGF), following the January Federation Account Allocation Committee (FAAC) meeting held on Friday in Abuja.

    A communiqué released after the meeting detailed that the total revenue comprised the following:

    • Statutory revenue: ₦386.124 billion
    • Value Added Tax (VAT): ₦604.872 billion
    • Electronic Money Transfer Levy (EMTL): ₦31.211 billion
    • Exchange Difference revenue: ₦402.714 billion

    Key Revenue Figures

    The communiqué highlighted that the gross revenue for December 2024 stood at ₦2.310 trillion, but deductions for cost of collection and transfers, interventions, and refunds totaled ₦84.780 billion and ₦801.175 billion, respectively.

    “Gross statutory revenue of ₦1.226 trillion was received for December 2024, a significant drop of ₦600.988 billion from the ₦1.827 trillion received in November 2024. Conversely, gross VAT revenue increased to ₦649.561 billion in December, up by ₦20.588 billion from ₦628.973 billion in November,” the communiqué stated.

    Revenue Distribution

    From the total distributable revenue of ₦1.424 trillion:

    • The Federal Government received ₦451.193 billion
    • State governments received ₦498.498 billion
    • Local Government Councils (LGCs) received ₦361.754 billion
    • ₦113.477 billion (13% of mineral revenue) was allocated to benefiting states as derivation revenue

    Breakdown of Major Revenue Components

    • Statutory Revenue (₦386.124 billion):
      • Federal Government: ₦167.690 billion
      • State Governments: ₦85.055 billion
      • LGCs: ₦65.574 billion
      • Derivation (13%): ₦67.806 billion
    • VAT Revenue (₦604.872 billion):
      • Federal Government: ₦90.731 billion
      • State Governments: ₦302.436 billion
      • LGCs: ₦211.705 billion
    • EMTL Revenue (₦31.211 billion):
      • Federal Government: ₦4.682 billion
      • State Governments: ₦15.605 billion
      • LGCs: ₦10.924 billion
    • Exchange Difference Revenue (₦402.714 billion):
      • Federal Government: ₦188.090 billion
      • State Governments: ₦95.402 billion
      • LGCs: ₦73.551 billion
      • Derivation (13%): ₦45.671 billion

    The communiqué noted significant increases in VAT and EMTL collections for December 2024. However, revenues from oil and gas royalties, CET levies, excise duty, import duty, petroleum profit tax, and companies income tax witnessed considerable declines.