The Federation Account Allocation Committee (FAAC) has distributed a total of N1.678 trillion among the Federal Government, 36 states, and 774 Local Government Councils for February, according to official figures released by the Office of the Accountant-General of the Federation (OAGF). This disbursement, while substantial, comes against a backdrop of declining revenues across key sectors.
The breakdown of the allocation reveals a complex revenue stream, including N827.633 billion in statutory revenue, N609.430 billion from Value Added Tax (VAT), N35.171 billion from the Electronic Money Transfer Levy (EMTL), N28.218 billion from Solid Minerals, and a N178 billion augmentation.
However, the communiqué from FAAC highlights a concerning trend: a significant reduction in gross revenue. February’s gross statutory revenue of N1.653 trillion represents a decrease of N194.664 billion compared to January. Similarly, VAT revenue fell by N117.430 billion, from N771.886 billion in January to N654.456 billion in February.
Of the total distributable revenue, the Federal Government received N569.656 billion, states received N562.195 billion, and Local Government Councils received N410.559 billion. Additionally, N136.042 billion was allocated to oil-producing states as 13% derivation revenue.
The report also detailed the breakdown of specific revenue streams. For instance, from the statutory revenue, the Federal Government received N366.262 billion, while states and local governments received N185.773 billion and N143.223 billion, respectively.
Notably, while Oil and Gas Royalty and EMTL saw increases, VAT, Petroleum Profit Tax (PPT), Companies Income Tax, Excise Duty, Import Duty, and CET Levies all experienced declines. This shift in revenue sources underscores the evolving economic landscape and its impact on government finances.
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