FAAC Revenue Declines by N9.6 Billion in May as Nigerian Government Tiers Share N1.1 Trillion

In May 2024, the Federation Accounts Allocation Committee (FAAC) reported a decrease of N9.604 billion in revenue, as the Nigerian Federal, state, and local governments distributed a total of N1.143 trillion.

According to the communiqué released by FAAC, the distributable revenue comprised N157.183 billion from statutory sources, N463.425 billion from Value Added Tax (VAT), N15.146 billion from Electronic Money Transfer Levy (EMTL), and N507.456 billion from Exchange Difference revenue.

After deductions for the cost of collection amounting to N76.647 billion, total transfers, interventions, and refunds stood at N1,104.935 billion. The gross statutory revenue for May amounted to N1.223 trillion.

Compared to the preceding month of April, FAAC revenue in May witnessed a decline of N9.604 billion, with a gross revenue of N497.665 billion from VAT, which was N3.255 billion lower than April’s figures.

The distribution breakdown revealed that the Federal Government received N69.514 billion from VAT revenue, while state governments and local government councils received N231.713 billion and N162.199 billion, respectively.

Furthermore, the Federal Government received N2.272 billion from the EMTL, while state governments and local government councils received N7.573 billion and N5.301 billion, respectively.

From the Exchange Difference revenue of N507.456 billion, the Federal Government received N233.017 billion, state governments received N118.189 billion, and local government councils received N91.119 billion. Additionally, N65.131 billion (13 percent of mineral revenue) was shared with the benefiting states as derivation revenue.

The communiqué also highlighted significant increases in Companies’ Income Tax Oil (CIT) and Petroleum Profit Tax (PPT), while Import and Excise Duties, Royalty Crude and Gas, EMTL, CET Levies, and VAT recorded considerable decreases.

The report concluded with the balance in the Excess Crude Account (ECA) at $473,754.57.