FG, States, LGAs share ₦1.424tn December 2024 revenue at FAAC meeting
The Federation Account Allocation Committee (FAAC) has distributed ₦1.424 trillion as revenue generated in December 2024 among the Federal Government, State Governments, and Local Government Councils. The allocation was finalised during the January 2025 FAAC meeting in Abuja, as disclosed by the Director of Press and Public Relations, Office of the Accountant General of the Federation, Bawa Mokwa.
The distributed revenue consisted of ₦386.124 billion from statutory allocations, ₦604.872 billion from Value Added Tax (VAT), ₦31.211 billion from the Electronic Money Transfer Levy (EMTL), and ₦402.714 billion as Exchange Difference revenue. The total gross revenue generated in December 2024 amounted to ₦2.310 trillion. However, after deductions of ₦84.780 billion for collection costs and ₦801.175 billion for transfers, interventions, and refunds, the distributable revenue stood at ₦1.424 trillion.
According to the FAAC communiqué, the Federal Government received ₦451.193 billion, while State Governments and Local Government Councils were allocated ₦498.498 billion and ₦361.754 billion, respectively. Mineral-producing states received an additional ₦113.477 billion as derivation revenue.
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Despite the significant distribution, gross statutory revenue for December 2024 dropped to ₦1.226 trillion, a decrease of ₦600.988 billion compared to November’s ₦1.827 trillion. On the other hand, VAT revenue recorded an increase, with ₦649.561 billion collected in December, surpassing the ₦628.973 billion generated in November by ₦20.588 billion.
The communiqué highlighted that the Federal Government received ₦188.090 billion from the Exchange Difference revenue, while states and local councils got ₦95.402 billion and ₦73.551 billion, respectively. Additionally, ₦45.671 billion from the Exchange Difference revenue was allocated to mineral-producing states as derivation revenue.
In December 2024, there were notable increases in VAT and EMTL collections, but significant declines were observed in Oil and Gas Royalties, CET Levies, Excise Duty, Import Duty, Petroleum Profit Tax (PPT), and Companies Income Tax (CIT). This mixed performance underscores the fluctuating nature of government revenue streams as economic and fiscal policies continue to shape collections across sectors.
Written by Sakinat Musa Abubakar, Editor at Neptune Prime
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