The Federation Account Allocation Committee (FAAC) has announced the historic allocation of N1.783 trillion from the November 2023 revenue. This substantial sum has been distributed among Nigeria’s federal, state, and local governments, marking a significant increase from the N1.08 trillion shared in the previous month.
According to FAAC’s communique from the December 2023 meeting, the total distributable revenue of N1.783 trillion is composed of various revenue streams. These include N376.306 billion from distributable statutory revenue, N335.656 billion from distributable Value Added Tax (VAT) revenue, N11.952 billion from electronic money transfer levy revenue, and N364.869 billion from exchange difference revenue.
During the meeting, it was revealed that the Gross Statutory Revenue for November 2023 stood at N882.560 billion, marking a considerable increase from the previous month. Additionally, the gross revenue available from VAT in November 2023 amounted to N360.455 billion, indicating a significant rise from the preceding month.
The breakdown of the N1.783 trillion distributed revenue shows that the federal government received N402.867 billion, state governments received N351.697 billion, and the 774 local government areas received N258.810 billion. Furthermore, N75.410 billion, representing 13% of mineral revenue, was shared with the benefiting states as derivation revenue.
From the distributable statutory revenue of N376.306 billion, the Federal Government received N174.908 billion, while the states and local government areas received N88.716 billion and N68.396 billion, respectively. Additionally, N44.286 billion, representing 13% of mineral revenue, was shared with the benefiting states as derivation revenue.
The distribution of the N335.656 billion distributable VAT revenue saw the Federal Government receiving N50.348 billion, the 36 states receiving N167.828 billion, and the local government areas receiving N117.480 billion.
Moreover, FAAC highlighted various revenue trends in November 2023, noting substantial increases in Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), Oil and Gas Royalties, and Value Added VAT. Conversely, transfer levies, import duty, and money transfer recorded decreases.
The excess crude account balance as of the meeting date remained at $473,754.57, underscoring the financial stability and management efforts of the Nigerian government.
The allocation of N1.783 trillion reflects a significant economic milestone for Nigeria and underscores the intricate financial dynamics that shape the country’s governance and fiscal policies. This substantial distribution of revenue is poised to impact diverse sectors and regions across the nation, paving the way for enhanced development and socioeconomic progress.
