Revenue shared among Nigeria’s federal, state, and local governments surged to N1.827 trillion in November 2024, marking a substantial increase of N490 billion from the N1.3 trillion distributed in October. This was disclosed in the latest communiqué from the Federation Accounts Allocation Committee (FAAC), released on Friday.
The report revealed that Nigeria’s gross revenue for the month rose to N3.143 trillion, a significant jump from the previous month. However, not all revenue streams performed well; Value Added Tax (VAT) revenue dropped to N628.972 billion, reflecting a N39.318 billion decline from October.
FAAC stated, “Total deductions for the cost of collection amounted to N103.307 billion. Despite the decline in VAT, notable increases were recorded in oil and gas royalties and CET levies.”
From the N1.827 trillion distributable revenue, the federal government received N581.856 billion, state governments received N549.792 billion, and local government councils got N402.553 billion. A derivation revenue of N193.291 billion, representing 13 per cent of mineral revenue, was also shared.
Key highlights of the breakdown included:
- Distributable statutory revenue: N455.354 billion
- Federal Government: N175.690 billion
- State Governments: N89.113 billion
- Local Governments: N68.702 billion
- VAT Revenue: N585.700 billion
- Federal Government: N87.855 billion
- State Governments: N292.850 billion
- Local Governments: N204.995 billion
- Electronic Money Transfer Levy (EMTL): N15.046 billion
- Federal Government: N2.257 billion
- State Governments: N7.523 billion
- Local Governments: N5.266 billion
- Exchange Differences Revenue: N671.392 billion
- Federal Government: N316.054 billion
- State Governments: N160.306 billion
- Local Governments: N123.590 billion
- Derivation Revenue: N71.442 billion
FAAC further noted that “transfers, interventions, and refunds contributed N1.312 trillion to the distributable revenue.”
The communiqué also highlighted mixed performance across revenue streams. While oil and gas royalties and CET levies saw notable increases, there were declines in excise duties, VAT, import duties, petroleum profit tax, companies’ income tax, and EMTL.
This allocation underscores the critical need for sustained revenue diversification to mitigate the impact of such fluctuations and support economic stability across all tiers of government.
