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Tag: FAAC

  • Stop depending on FAAC, leverage on local resources, Bagudu tells LG

    Stop depending on FAAC, leverage on local resources, Bagudu tells LG

    The minister of budget and economic planning, Abubakar Atiku Bagudu, has advised local government administrators to stop depending on federal allocation and look inwards to harness internal resources abound in the all the 774 local government areas in the country.

    The former Kebbi state governor said that all the local government areas in the country should cash on the comparative advantage of resources in their areas, stressing that councils are blessed in one way of the other in terms of resources.

    Badugu spoke on Tuesday in Abuja while addressing participants at the 4th edition of Local Government Economic Summit organised by the Summit Group.

    On the theme of the summit, “25 Years of Uninterrupted Democracy in Nigeria: The Place of Local Government in Rural Development and Food Security”, Badugu noted all the existing councils are economically viable but lamented that their insistence on federal and state governments have grossly affected development in the grassroot.

    “We must think outside the box on how to explore our comparative advantage in the interest of our people. Local government should not just dependent on transfer from state and the federal government, they should look inwards on how to harness their resources.”

    The minister recalled how he leverage on rice and cassava when he was the governor of Kebbi State to change the fortune of the state.

    Kano State governor, Engr. Abba Yusuf, said local government are uniquely position to identify the challenges of those at the grassroots as well as proffer solutions to addressing same.

    Read Also: Tinubu’s govt will stop hunger, fight insecurity – Wike

    Represented by his deputy, Comrade Aminu Abdulsalam Garazo, the governor said in order to ensure food security at the grassroot, government  must support small holders farmers with necessary implements if they must deliver and help in addressing food insecurity.

    He then assured local government leaders  in the state  of the readiness of his administration to provide the needed platform to strengthen local government.

    Earlier the National President of Association of Local Government of Nigeria (ALGON), Hon. Bello Lawal said the newly granted financial autonomy to to local government has heightened the expectation of the people but called for support of the other tiers of government, developmental partners and civil societies for the new regime ti function perfectly well.

    “We have no other choice but to rise to the occasion and ensure that all LGCs play their rightful role in driving development across the country. Transparency, accountability, openness, and accessibility will continue to be our watch words and the bedrock of our policies and leadership. 

    “I will like assure all and sundry that the current crop of leaders at Local Government level will not disappoint Nigerians.

    The ALGON leader assured that the association is committed to ensuring a strong collaboration and partnership with the federal and state governments, Development Partners, Private Sectors and other key stakeholders to ensure accelerated development at the grassroot levels. 

  • Uncertainty over Rivers’ FAAC allocation amid legal battle

    Uncertainty over Rivers’ FAAC allocation amid legal battle

    • Appeal Court reserves judgment in Fubara’s suit
    • Fed Govt may block Oct funds, cites court order

    Uncertainty yesterday hung over the release of October share of Rivers State by the Federation Account Allocation Committee (FAAC).

    It emerged that the funds’ remittance is contingent on the decision of the Court of Appeal on the matter.

    The appellate court yesterday reserved judgments in six separate cases arising from the face-off between Rivers State Governor Siminialayi Fubara and the State House of Assembly led by Martins Amaewhule (as Speaker).

    The October allocations to the 36 states, the Federal Capital Territory and the 774 local governments are currently being processed for disbursement but the Office of the Accountant General of the Federation (OAGF) hinted  that  it would be guided by whatever court order subsists at the time of disbursement.

    The implication is that Rivers may not receive its share if the Court of Appeal rules against it within the next one week.

    The preparation of the mandate typically takes between three and seven working days.

    Once it is finalised, it will be forwarded to the Central Bank of Nigeria (CBN) which will then handle the disbursement.

    The six appeals before the Court of Appeal are in respect of two judgments of a Federal High Court in Abuja.

    A three-member panel of the court, presided over by Justice Hamman Barka, told parties yesterday after listening to their final lawyers’ submissions, that judgments in the appeals would be delivered on a date to be communicated to them.

    The first appeal is on CA/ABJ/CV/1303/2021 filed by the Governor of Rivers State against the October 30 judgment delivered by Justice Joyce Abdulmalik of the Federal High Court, Abuja.

    The court issued an order consolidating all the six appeals.

    The other five are: CA/ABJ/CV/1287/2024 filed by the Government of Rivers State; CA/ABJ/CV/1196/2024 also filed by the Government of Rivers State; CA/ABJ/CV/1277/2024 filed by the Rivers State Independent Electoral Commission; CA/ABJ/CV/1293/2024 filed by the Accountant General of Rivers State and CA/ABJ/CV/1360/2024 filed by one of Rivers State’s bankers – Zenith Bank.

    Read Also: I won’t give up on impactful projects in FCT despite criticism – Wike

    Justice Abdulmalik, in the October 30 judgment, restrained the CBN and the Accountant General of the Federation from further releasing financial allocations to the Rivers State Government pending when a lawful appropriation act is passed by a validly constituted State House of Assembly.

    She restrained Access Bank and Zenith Bank from allowing the Rivers State Government and the governor to make withdrawals from the state’s funds being held in the banks.

    The Rivers State House of Assembly and  Amaewhule (as Speaker) had in the suit alleged, among others, unauthorised withdrawal and continued withdrawal of funds from the Rivers State Consolidated Revenue Funds Account by Governor Fubara.

    Listed as defendants in the suit marked: FHC/ABJ/CS/984/2024 are the CBN, Zenith Bank, Access Bank, the Accountant General of the Federation, the Governor of Rivers State, the Accountant General of Rivers State, Justice S. C. Amadi (Chief Judge of Rivers State), Justice Adolphus Enebeli (retired) who is the Chairman of the Rivers State Independent Electoral Commission and the Rivers State Government.

    Justice Abdulmalik held that the decision of Governor Siminalayi Fubara to present the Rivers State’s 2024 Appropriation Bill to a four-member Assembly, that was not properly constituted, should not be allowed to stand.

    The judge noted that the issue about the legality of the budget purportedly passed by four members of the Rivers State House of Assembly, which Fubara claimed he had assented to, was declared invalid in a January 22 judgment by Justice James Omotosho of the Federal High Court in Abuja.

    She also noted that in the same judgment, which was affirmed by the Court of Appeal in a judgment on October 10, Justice Omotosho found that Amaewhule is the authentic Speaker of the Rivers State House of Assembly.

    Justice Abdulmalik said Fubara’s decision to present the 2024 Appropriation Bill of Rivers State before only four members of the state’s Assembly amounted to a gross violation of Section 91 of the Constitution.

    The judge added that the decision of the four members of the House Assembly purporting to have passed the Rivers State’s Appropriation Bill 2024, which Fubara said he had assented to, could not and must not be allowed to stand, having been passed in clear violation of Sections 91 and 96 of the Constitution as it has been set aside by an order of the court which was recently affirmed by the Court of Appeal.

    She held that Sections 91 and 96 of the Constitution is a precondition without which the powers of the fifth defendant to present the 2024 financial year estimate of the revenue and expenditure before the House of Assembly cannot be properly exercised in accordance with section 121(1) of the Constitution

    Justice Abdulmalik said: “Since there is nothing in the counter affidavits of all the defendants to suggest that the fifth defendant complied with the provisions of section 120(2)(3)&(4) and section 121(1) of the Constitution in presenting the Rivers State’s Appropriation Bill in respect of the 2024 financial year before a validly constituted House of Assembly, this court has an enormous duty to protect and guide the Constitution from unwarranted assault to curb the excesses of powers and infraction of constitutional order.

    “Where there is dereliction of constitutional order as in this instant case, this court will surely not shy away from its sacred constitutional responsibility to do what it considered just in the circumstances,” she said.

    Justice Abdulmalik proceeded to grant all the reliefs sought by the plaintiffs.

    The reliefs granted included:

    *A declaration that the 1st defendant (Central Bank of Nigeria) is not entitled to release any amount, money, fund or revenue standing to the credit of Rivers State in the Consolidated Revenue Fund of Rivers State domiciled at the Central Bank of Nigeria including all allocations and revenue receipts including from the Federation Account Allocation Committee (FAAC) due to Rivers State from the Federation Account or from any other source to the 2nd defendant (Zenith Bank) or any other bank, being the commercial bankers of Rivers State Government or any other person until the fund has been duly charged with the relevant expenditures by an Appropriation Law duly made by the House of Assembly of Rivers State.

    *A declaration that the 1st, 2nd and 3rd defendants (CBN, Zenith and Access) by themselves or by their servants or agents are not entitled to release or permit the withdrawal of any amount, money, fund or revenue standing to the credit of Rivers State, Rivers State Government, Rivers State Government institutions or agencies (funded through appropriations in the Appropriation Law made by the House of Assembly of Rivers State) including Rivers State Independent Electoral Commission  (the 7th defendant) for any purpose whatsoever until an Appropriation Law has been duly Made by the House of Assembly of Rivers State.

    *A declaration that the Appropriation Bill for the Financial year beginning from 1st January 2024 and ending 31st December 2024 not having been presented by the 5th defendant (Fubara) and passed into law or made an Appropriation Law by the House of Assembly of Rivers State, the power of the Governor of Rivers State (the 5th defendant) to authorize or continue to authorize withdrawal of moneys, fund or revenue from the Consolidated Revenue Fund of Rivers State domiciled in the Central Bank of Nigeria (the 1st defendant) or from any moneys, fund or revenue standing to the credit of Rivers State or Rivers State Government (from whatsoever source derived), domiciled in, held by or in the custody of the 1st,  2nd, 3rd  or 4th defendant (Accountant General of the Federation);ceased and it is no longer available to be exercised with effect from the 1st day of July 2024 by the 5th defendant or any other person acting on his behalf or deriving authority from the 8th defendant (the Chief Judge) or the office of the governor of Rivers State, including the 6th, 7th, 8th, 9th and 10th defendants.

    * A declaration that it is illegal, unlawful, unconstitutional and a subversion of the Constitution of the Federal Republic of Nigeria 1999 (as amended) for the 5th defendant to withdraw, authorize or continue to authorize withdrawal of moneys, fund or revenue from the Consolidated Revenue Fund of Rivers State, no matter where domiciled or any moneys, fund or revenue belonging to Rivers State or standing to the credit of Rivers State Government no matter where it is kept, or for the 1st, 2nd, 3rd and/or 4th defendants by themselves or by their servants or agents to release, continue to release, withdraw or permit the withdrawal of any moneys, fund or revenue in the Consolidated Revenue Fund of Rivers State or belonging to Rivers State, no matter by whatever name called with effect from the 1st day of July 2024 when the constitutional power of the 5th defendant to authorize withdrawal of such moneys, funds or revenue in the absence of an Appropriation Law ceased absolutely.

    *A declaration that it is illegal, unlawful, unconstitutional and a subversion of the Constitution for the 1st, 2nd,  3rd and/or 4th defendants by themselves or by their servants or agents to release monies  to, to permit withdrawal, continue to release or to continue to permit withdrawal of moneys, funds or revenue at the instance of or by the 5th, 6th, 7th, 8th, 9th or 10th defendants in respect of or for the purported purpose of the proposed conduct of Local Government Councils election for Rivers State or for the purpose of funding tribunals, including Election Tribunals or Election Appeal Tribunals for the said election.

    *An order of injunction restraining the 1st, 2nd, 3rd and/or 4th defendants by themselves or by their servants or agents from releasing any moneys, funds, or revenue of Rivers State or Rivers State Government, its ministries, departments or agencies or withdrawing or permitting the withdrawal of any such moneys, funds or revenue from the Consolidated Revenue Fund or from any Account kept in respect of moneys, funds or revenue due to, or belonging to Rivers State or in respect of any moneys, fund or revenue of Rivers State or due to Rivers State or Rivers State Government to/by the 5th, 6th, 7th, 8th, 9th and/or 10th defendants or on the authorization of or at the instance of any of them, individually or jointly until an Appropriation Law for the 2024 Financial Year has been duly made by the House of Assembly of Rivers State.

    *An order of injunction restraining the 5th, 6th, 7th, 8th, 9th and/or 10th defendants, by themselves or by their servants and/or agents from authorizing the withdrawal of, withdrawing , or demanding for the release of moneys, fund or revenue from the Consolidated Revenue Fund of Rivers State/Rivers State Government or any moneys, fund or revenue due to or belonging to Rivers State or Rivers State Government until an Appropriation Law for the 2024 Financial Year has been duly made by the House of Assembly of Rivers State.”

     We’ll be guided by court order, says OAGF

    Speaking to The Nation yesterday in Abuja, spokesman for the OAGF, Bawa Mokwa, said the OAGF would obey the court on releasing or not releasing the state’s share.

    When asked about earlier reports suggesting that Rivers State might miss out on the October FAAC allocation entirely, Mokwa declined to provide a definite answer. Instead, he maintained that the OAGF’s actions would be guided by prevailing court order.

    He had earlier been quoted emphasising that the office is closely monitoring the legal proceedings. “We know the Appeal Court will be diligent in handling the case,” he said.

    He was quoted to have said: “What I got is that the October 2024 FAAC has not been distributed yet. However, the Federal Government will obey the court order on the matter of Rivers State allocation.”

  • FAAC shares N1.411trn October revenue

    FAAC shares N1.411trn October revenue

    The Federation Accounts Allocation Committee (FAAC) has distributed a total of N1.411 trillion as revenue for October 2024 among the Federal Government, State, and Local Government Councils.

    The allocation was finalised at the November 2024 FAAC meeting held in Bauchi State, presided over by the Accountant General of the Federation, Dr. Oluwatoyin Madein.

    A communiqué issued after the meeting detailed that the N1.411 trillion distributable revenue comprised statutory revenue of N206.319 billion, Value Added Tax (VAT) revenue of N622.312 billion, Electronic Money Transfer Levy (EMTL) revenue of N17.111 billion, and Exchange Difference revenue of N566.000 billion.

    From this amount, the Federal Government received N433.021 billion, State Governments received N490.696 billion, and Local Government Councils received N355.621 billion, while N132.404 billion, representing 13 percent of mineral revenue, was allocated to oil-producing states as derivation revenue.

    The statutory revenue of N206.319 billion was shared among the Federal Government, which received N77.562 billion; State Governments, which received N39.341 billion; and Local Government Councils, which received N30.330 billion. An additional N59.086 billion was allocated to oil-producing states as derivation revenue.

    From the N622.312 billion VAT revenue, the Federal Government received N93.347 billion, State Governments received N311.156 billion, and Local Government Councils received N217.809 billion.

    The EMTL revenue of N17.111 billion was distributed with the Federal Government receiving N2.567 billion, State Governments N8.555 billion, and Local Government Councils N5.989 billion.

    The Exchange Difference revenue of N566.000 billion was shared with the Federal Government receiving N259.545 billion, State Governments N131.644 billion, and Local Government Councils N101.493 billion, while N73.318 billion went to oil-producing states as derivation revenue.

    The communiqué also revealed a gross revenue of N2.668 trillion for October 2024, with deductions for the cost of collection amounting to N97.517 billion and N1.159 trillion set aside for transfers, interventions, and refunds.

    Read Also: FAAC shares N1.298tr to Fed, States, LGAs for September 2024

    Gross statutory revenue for October stood at N1.336 trillion, higher than the N1.043 trillion collected in September by N293.009 billion. Similarly, VAT revenue for October increased by N84.616 billion, reaching N668.291 billion compared to September’s figure of N583.675 billion.

    Revenues from Oil and Gas Royalty, Excise Duty, VAT, Import Duty, Petroleum Profit Tax (PPT), and Companies Income Tax (CIT) saw significant increases, while revenues from the EMTL and CET levies recorded considerable declines.

    The November 2024 FAAC meeting was held after the 2024 National Council on Finance and Economic Development (NACOFED), hosted by the Bauchi State Government.

  • FAAC shares N1.298tr to Fed, States, LGAs for September 2024

    FAAC shares N1.298tr to Fed, States, LGAs for September 2024

    The Federation Accounts Allocation Committee (FAAC) has distributed N1.298 trillion to the Federal, State and Local Governments as revenue for September 2024. 

    This was disclosed at the end of the October 2024 FAAC meeting in Abuja on Thursday.

    The total distributable revenue comprises several components: N124.716 billion in statutory revenue, N543.518 billion in Value Added Tax (VAT), N18.445 billion from the Electronic Money Transfer Levy (EMTL), N462.191 billion from Exchange Difference revenue, and an augmentation of N150 billion.

    A communiqué from the FAAC meeting noted the total available revenue for September 2024 stood at N2.258 trillion. 

    Of this, N80.993 billion was deducted for cost of collection while N878.946 billion went toward transfers, interventions and refunds.

    In September, gross statutory revenue amounted to N1.043 trillion, a decrease of N177.426 billion compared to August’s figure of N1.221 trillion. However, VAT revenue rose to N583.675 billion, up by N10.334 billion from August’s N573.341 billion.

    Read Also: FAAC: Fed Govt, states, councils shares N1.2tr for August

    From the total distributable revenue, the Federal Government received N424.867 billion, State Governments received N453.724 billion and Local Government Councils received N329.864 billion. 

    N90.415 billion was also distributed to oil-producing states as derivation revenue (13% of mineral revenue).

    Breaking down the components, from the N124.716 billion statutory revenue, the Federal Government received N43.037 billion, States N21.829 billion, Local Governments N16.829 billion and N43.021 billion was shared as derivation revenue.

    From the N543.518 billion VAT revenue, the Federal Government received N81.528 billion, States N271.759 billion, and Local Governments N190.231 billion.

    From the N18.445 billion EMTL, the Federal Government received N2.767 billion, States N9.222 billion, and Local Governments N6.456 billion.

    From the N462.191 billion Exchange Difference revenue, the Federal Government received N218.515 billion, States N110.834 billion, Local Governments N85.448 billion, and N47.394 billion was allocated as derivation revenue.

    From the N150 billion augmentation, the Federal Government received N79.020 billion, States N40.080 billion, and Local Governments N30.900 billion.

    The communiqué further noted a significant increase in Oil and Gas Royalty, Excise Duty, EMTL, and CET Levies, while VAT and Import Duty rose slightly. On the other hand, Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) experienced considerable declines

  • FAAC: Fed Govt, states, councils shares N1.2tr for August

    FAAC: Fed Govt, states, councils shares N1.2tr for August

    The Federation Accounts Allocation Committee (FAAC) has announced the disbursement of N1.203 trillion in revenue for August 2024 to the Federal Government, State Governments, and Local Government Councils.

    The announcement is contained in a communiqué released after the FAAC’s September 2024 meeting in Abuja.

    The total distributable revenue of N1.203 trillion comprises several sources, reflecting the government’s diverse revenue streams. This amount includes distributable statutory revenue of N186.636 billion, distributable Value Added Tax (VAT) revenue of N533.895 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.017 billion, and Exchange Difference revenue of N468.245 billion. These figures reflect the government’s continued reliance on multiple channels to generate public funds, although some sources showed a decrease from the previous month.

    Read Also: Drama as judge, SAN clash in N1.35b ‘fraud’ trial

    The FAAC communiqué also reported that the total revenue available for distribution in August 2024 was N2.278 trillion. However, the actual distributable amount was reduced following deductions for cost of collection, which stood at N81.975 billion, as well as transfers, interventions, and refunds amounting to N992.617 billion.

    These deductions indicate the costs incurred by various government agencies in collecting the revenue, as well as amounts transferred for specific interventions or refunds during the month.

    The gross statutory revenue collected for August 2024 amounted to N1.221 trillion, representing a decrease of N165.994 billion compared to July 2024, when the statutory revenue was N1.387 trillion.

    Similarly, the gross revenue from VAT for August was N573.341 billion, down by N51.988 billion from the N625.329 billion recorded in July. These declines highlight the volatility in some of the major revenue sources, particularly as they relate to domestic consumption and taxation.

    From the N1.203 trillion total distributable revenue, the Federal Government, State Governments, and Local Government Councils received allocations. The Federal Government received N374.925 billion, the State Governments received N422.861 billion, and the Local Government Councils received N306.533 billion. In addition, a total sum of N99.474 billion, which represents 13% of mineral revenue, was shared to the oil-producing states as derivation revenue.

    Of the N186.636 billion distributable statutory revenue, the Federal Government received N71.624 billion, while the State Governments received N36.329 billion, and the Local Government Councils received N28.008 billion. Furthermore, N50.675 billion was allocated to oil-producing states as derivation revenue from this statutory distribution.

    From the N533.895 billion VAT revenue, the Federal Government received N80.084 billion, while the State Governments and Local Government Councils received N266.948 billion and N186.863 billion respectively.

    In terms of the N15.017 billion generated from the Electronic Money Transfer Levy (EMTL), the Federal Government received N2.252 billion, while the State Governments received N7.509 billion, and the Local Government Councils received N5.256 billion.

    The N468.245 billion from Exchange Difference revenue was distributed with the Federal Government receiving N220.964 billion, the State Governments receiving N112.076 billion, and the Local Government Councils receiving N86.406 billion. In addition, oil-producing states were allocated N48.799 billion from this revenue as derivation.

    The communiqué noted significant declines in several key revenue sources for August 2024. Oil and Gas Royalty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import and Excise Duties, Electronic Money Transfer Levy (EMTL), CET Levies, and Companies Income Tax (CIT) all recorded decreases. These reductions reflect broader economic challenges, particularly within the oil and gas sector, which continues to face fluctuating global prices and production issues. The decrease in VAT collections may also point to reduced consumer spending or changes in VAT remittance compliance.

    As of August 2024, the balance in the Excess Crude Account (ECA), which serves as a savings buffer for the country in times of revenue shortfall, stood at $473,754.57. The meager amount in the ECA remains a point of concern, given the country’s reliance on crude oil revenues to fund many of its developmental and fiscal obligations.

    The N1.203 trillion shared among the Federal, State, and Local Governments for August 2024 reflects both the ongoing fiscal challenges Nigeria faces and the government’s efforts to manage public revenue collection and distribution. The significant declines in statutory revenue and VAT, compared to July 2024, underscore the need for more diversified and stable revenue sources to sustain the government’s financial commitments.

    Despite these challenges, the revenue distribution ensures that all tiers of government receive funds necessary for governance and service delivery, although the dwindling contributions from traditional sectors like oil and gas remain a critical concern moving forward.

  • FG, States, councils share N1.203tr for August 2024

    FG, States, councils share N1.203tr for August 2024

    The Federation Accounts Allocation Committee (FAAC) has announced the disbursement of N1.203 trillion in revenue for August 2024 to the Federal Government, State Governments, and Local Government Councils.

    The announcement was contained in a communiqué after the FAAC’s September 2024 meeting in Abuja.

    The total distributable revenue of N1.203 trillion comprises several sources, reflecting the government’s diverse revenue streams.

    This amount includes distributable statutory revenue of N186.636 billion, distributable Value Added Tax (VAT) revenue of N533.895 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.017 billion and Exchange Difference revenue of N468.245 billion.

    These figures reflect the government’s continued reliance on multiple channels to generate public funds, although some sources showed a decrease from the previous month.

    The FAAC communiqué also reported that the total revenue available for distribution in August 2024 was N2.278 trillion.

    However, the actual distributable amount was reduced following deductions for cost of collection, which stood at N81.975 billion as well as transfers, interventions, and refunds amounting to N992.617 billion.

    These deductions indicate the costs incurred by various government agencies in collecting the revenue as well as amounts transferred for specific interventions or refunds during the month.

    The gross statutory revenue collected for August 2024 amounted to N1.221 trillion, representing a decrease of N165.994 billion compared to July 2024 when the statutory revenue was N1.387 trillion.

    Similarly, the gross revenue from VAT for August was N573.341 billion, down by N51.988 billion from the N625.329 billion recorded in July. These declines highlight the volatility in some of the major revenue sources, particularly as they relate to domestic consumption and taxation.

    From the N1.203 trillion total distributable revenue, the Federal Government, State Governments, and Local Government Councils received allocations. The Federal Government received N374.925 billion, the State Governments received N422.861 billion, and the Local Government Councils received N306.533 billion. In addition, a total sum of N99.474 billion, which represents 13% of mineral revenue, was shared to the oil-producing states as derivation revenue.

    Read Also: Fed govt committed to empowering youth – Akume

    Of the N186.636 billion distributable statutory revenue, the Federal Government received N71.624 billion, while the State Governments received N36.329 billion, and the Local Government Councils received N28.008 billion. Furthermore, N50.675 billion was allocated to oil-producing states as derivation revenue from this statutory distribution.

    From the N533.895 billion VAT revenue, the Federal Government received N80.084 billion, while the State Governments and Local Government Councils received N266.948 billion and N186.863 billion respectively.

    In terms of the N15.017 billion generated from the Electronic Money Transfer Levy (EMTL), the Federal Government received N2.252 billion, while the State Governments received N7.509 billion, and the Local Government Councils received N5.256 billion.

    The N468.245 billion from Exchange Difference revenue was distributed with the Federal Government receiving N220.964 billion, the State Governments receiving N112.076 billion, and the Local Government Councils receiving N86.406 billion. In addition, oil-producing states were allocated N48.799 billion from this revenue as derivation.

  • FAAC disburses N1.358tr in July Federation Accounts Revenue

    FAAC disburses N1.358tr in July Federation Accounts Revenue

    At Friday’s meeting of the Federation Accounts Allocation Committee (FAAC) in Abuja, a total sum of N1.358 trillion was shared among the Federal Government, State Governments, and Local Government Councils in Nigeria.

    This allocation, which came from the July 2024 Federation Accounts Revenue, is aimed at promoting equitable distribution of resources across the country.

    According to the communiqué issued at the end of the meeting, the Federal Government received a cumulative sum of N431.079 billion, while state governments were allocated N473.477 billion. Local governments received N343.703 billion, and oil-producing states were granted N109.816 billion.

    The breakdown of the N1.358 trillion total distributable revenue includes N161.593 billion as distributable statutory revenue, N582.307 billion as distributable Value Added Tax (VAT) revenue, and N18.818 billion as Electronic Money Transfer Levy (EMTL) revenue. Additionally, the revenue comprised N581.710 billion from Exchange Difference revenue and N13.647 billion from Solid Mineral revenue.

    The FAAC communiqué further revealed that the total revenue available in July 2024 amounted to N2.613 trillion. After deducting the cost of collection, which stood at N99.756 billion, the total transfers, interventions, and refunds amounted to N1.155 trillion.

    Read Also: FAAC disburses N1.358tr in July 2024 to FG, States, LGAs

    The gross statutory revenue for July 2024 stood at N1.387 trillion, which represents a decline of N45.517 billion compared to June 2024. In terms of Value Added Tax (VAT), N625.329 billion was generated in July 2024, indicating an increase of N62.644 billion compared to the previous month.

    From the total distributable revenue of N1.358 trillion, the Federal Government received N431.079 billion, while the State Governments received N473.477 billion. The Local Government Councils received N343.703 billion, and the oil-producing states were granted N109.816 billion as derivation revenue, amounting to 13% of mineral revenue.

    Breaking down the distributable statutory revenue of N161.593 billion, the Federal Government received N58.545 billion, while the State Governments received N29.695 billion. The Local Government Councils received N22.894 billion, and the benefiting states received N50.459 billion as 13 percent derivation revenue.

    Regarding the distributable Value Added Tax (VAT) revenue of N582.307 billion, the Federal Government received N87.346 billion, the State Governments received N291.154 billion, and the Local Government Councils received N203.807 billion.

    Furthermore, the Electronic Money Transfer Levy (EMTL) revenue of N18.818 billion saw the Federal Government receive N2.823 billion, the State Governments receive N9.409 billion, and the Local Government Councils receive N6.586 billion.

    Examine the breakdown of the N581.710 billion Exchange Difference revenue, the Federal Government received N276.110 billion, the State Governments received N140.047 billion, and the Local Government Councils received N107.970 billion. Additionally, the benefiting states obtained N57.583 billion as derivation revenue.

    As for the N13.647 billion Solid Mineral revenue, the Federal Government received N6.255 billion, the State Governments received N3.172 billion, and the Local Government Councils received N2.446 billion. Additionally, the benefiting states received N1.774 billion as derivation revenue.

    The detailed report also revealed changes in various revenue streams. Oil and Gas Royalty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import Duty, Electronic Money Transfer Levy (EMTL), and CET Levies experienced significant increases, while Companies Income Tax (CIT) recorded a decrease and Excise Duties slightly increased.

    Despite the revenue allocations, the balance in the Excess Crude Account (ECA) remained unchanged at $473,754.57.

    This latest distribution of funds from the Federation Accounts Revenue is aimed at fostering development and promoting economic growth across the various tiers of government in Nigeria.

  • FAAC disburses N1.358tr in July 2024 to FG, States, LGAs

    FAAC disburses N1.358tr in July 2024 to FG, States, LGAs

    The Federation Accounts Allocation Committee (FAAC) has shared N1.358 trillion to Federal Government, States and Local Government Councils in July 2024.

    This allocation, which came from the July 2024 Federation Accounts Revenue, is aimed at promoting equitable distribution of resources across the country.

    According to the communiqué at the end of the meeting, the Federal Government received a cumulative sum of N431.079 billion while state governments were allocated N473.477 billion. Local governments received N343.703 billion, and oil-producing states were granted N109.816 billion.

    The breakdown of the N1.358 trillion total distributable revenue includes N161.593 billion as distributable statutory revenue, N582.307 billion as distributable Value Added Tax (VAT) revenue, and N18.818 billion as Electronic Money Transfer Levy (EMTL) revenue. Additionally, the revenue comprised N581.710 billion from Exchange Difference revenue and N13.647 billion from Solid Mineral revenue.

    The FAAC communiqué further revealed that the total revenue available in July 2024 amounted to N2.613 trillion. After deducting the cost of collection, which stood at N99.756 billion, the total transfers, interventions, and refunds amounted to N1.155 trillion.

    The gross statutory revenue for July 2024 stood at N1.387 trillion, which represents a decline of N45.517 billion compared to June 2024. In terms of Value Added Tax (VAT), N625.329 billion was generated in July 2024, indicating an increase of N62.644 billion compared to the previous month.

    From the total distributable revenue of N1.358 trillion, the Federal Government received N431.079 billion, while the State Governments received N473.477 billion. The Local Government Councils received N343.703 billion, and the oil-producing states were granted N109.816 billion as derivation revenue, amounting to 13% of mineral revenue.

    Breaking down the distributable statutory revenue of N161.593 billion, the Federal Government received N58.545 billion, while the State Governments received N29.695 billion. The Local Government Councils received N22.894 billion, and the benefiting states received N50.459 billion as 13 percent derivation revenue.

    Regarding the distributable Value Added Tax (VAT) revenue of N582.307 billion, the Federal Government received N87.346 billion, the State Governments received N291.154 billion, and the Local Government Councils received N203.807 billion.

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    Furthermore, the Electronic Money Transfer Levy (EMTL) revenue of N18.818 billion saw the Federal Government receive N2.823 billion, the State Governments receive N9.409 billion, and the Local Government Councils receive N6.586 billion.

    On breakdown of the N581.710 billion Exchange Difference revenue, the Federal Government received N276.110 billion, the State Governments received N140.047 billion, and the Local Government Councils received N107.970 billion. Additionally, the benefiting states obtained N57.583 billion as derivation revenue.

    As for the N13.647 billion Solid Mineral revenue, the Federal Government received N6.255 billion, the State Governments received N3.172 billion, and the Local Government Councils received N2.446 billion. Additionally, the benefiting states received N1.774 billion as derivation revenue.

    The detailed report also revealed changes in various revenue streams. Oil and Gas Royalty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import Duty, Electronic Money Transfer Levy (EMTL), and CET Levies experienced significant increases, while Companies Income Tax (CIT) recorded a decrease and Excise Duties slightly increased.

    Despite the revenue allocations, the balance in the Excess Crude Account (ECA) remained unchanged at $473,754.57.

    This latest distribution of funds from the Federation Accounts Revenue is aimed at fostering development and promoting economic growth across the various tiers of government in Nigeria.

  • FAAC shares N1.143tr among tiers of govt

    FAAC shares N1.143tr among tiers of govt

    The Federation Accounts Allocation Committee (FAAC) has disbursed a total of N1.143 trillion among the Federal Government, states, and local government councils.

    The distribution was held during the June 2024 FAAC meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.

    A communiqué issued yesterday in Abuja by FAAC detailed the revenue breakdown: the total distributable revenue comprised N157.183 billion from statutory revenue, N463.425 billion from Value Added Tax (VAT), N15.146 billion from Electronic Money Transfer Levy (EMTL), and N507.456 billion from Exchange Rate Difference.

    For the month of May, the total revenue available was N2.324 trillion, deductions for collection costs amounted to N76.647 billion, while transfers, interventions, and refunds totalled N1.104 trillion.

    The gross statutory revenue for May stood at N1.223 trillion, a slight decrease from the N1.233 trillion received in April, by N9.604 billion.

    Similarly, VAT revenue for May was N497.665 billion, slightly lower than the N500.920 billion recorded in April, by N3.255 billion.

    From the total distributable revenue of N1.143 trillion, the Federal Government got N365.813 billion, state governments N388.419 billion, and the local government councils N282.476 billion. Benefiting states also got N106.502 billion as 13 per cent of mineral derivation revenue.

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    A breakdown of the N157.183 billion distributable statutory revenue shows that the Federal Government received N61.010 billion, the state governments N30.945 billion, and the local government councils N23.857 billion. An additional N41.371 billion was allocated to the benefiting states as derivation revenue.

    From the N463.425 billion VAT revenue, the Federal Government got N69.514 billion, the state governments N231.713 billion, and the local government councils N162.199 billion.

    From the N15.146 billion earned from EMTL, the Federal Government got N2.272 billion, the state governments N7.573 billion, and the local government councils N5.301 billion.

    The N507.456 billion earned form Exchange Rate Difference revenue was shared with the Federal Government receiving N233.017 billion, the state governments N118.189 billion, and the local government councils N91.119 billion. Additionally, N65.131 billion (13 per cent mineral derivation revenue) was allocated to the benefiting states.

  • Presidential committee proposes daily FAAC fund disbursement

    Presidential committee proposes daily FAAC fund disbursement

    The Presidential Fiscal Policy and Tax Reform Committee has proposed to transform the Federation Account Allocation Committee (FAAC) disbursement process. 

    The committee plans to shift from monthly to daily disbursements to the three tiers of government.

    Chairman of the Presidential Fiscal Policy and Tax Reform Committee Taiwo Oyedele stated this in Abuja on Monday at a public consultation workshop for journalists and public analysts 

    Traditionally, FAAC meets monthly to allocate funds to Federal, State and local governments.

    But Oyedele explained this method is outdated, similar to practices in 1814. 

    “We believe the system can be configured to credit the accounts of local, state, and federal governments daily,” Oyedele stated, adding that this change has received support from key stakeholders, including the Accountant General of the Federation.

    The proposed daily disbursement system aims to make the monthly FAAC meetings more focused on national fiscal strategies rather than routine reconciliations, which can be handled by junior accountants. 

    This change is expected to streamline processes and reduce the impact of sudden changes in foreign exchange rates.

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    Oyedele highlighted the need to reduce the cost of revenue collection to 1 percent aligning with international best practices. 

    Nigeria’s collection costs range from 4 percent to over 30 percent. “If an agency cannot collect revenue at 1 percent, it should not be collecting it at all,” Oyedele emphasised. 

    This reform aims to ensure government agencies focus on their primary functions rather than duplicating tax collection efforts.

    According to Oyedele: “We are serious with the 1 percent and it should cut across everybody, if you cannot collect revenue with 1 percent then you should not be collecting it at all that’s why we were saying let government agencies focus on the primary reason they were set up for. 

    “If they are not set up to collect tax they can’t be efficient and competent in doing it, things will work better if everybody plays to their strength there’s a reason why every country has their revenue collection agency and not to replicate that function and be expecting that everything will be fine. A countries like South Africa is under 1 percent.

    Addressing the issue of Value Added Tax (VAT) collection, Oyedele and the disputes between federal and state governments in the past, the committee is recommending placing VAT under the exclusive list for centralised collection with 90 percent of the revenue allocated to the States. 

    This proposal is seen as a political solution to a problem that has led to legal battles.

    The committee also is also proposing a phased reduction of the Corporate Income Tax (CIT) rate from 30 percent to 25 percent by 2026.