Economy

Tinubu reveals when Nigerians will start seeing benefits of his tough decisions as FAAC shares N1.1trn revenue to FG, others

Published

5 months ago

January 24, 2024

President Bola Ahmed Tinubu has promised that Nigerians would soon enjoy the benefits of the “tough but yet necessary decisions” of his administration.

The president made the promise on Tuesday at the State House during a meeting with the South-South Monarchs Forum, led by His Royal Majesty, Major-General Felix Mujakperuo (Rtd), Chairman of the Delta State Council of Traditional Rulers, and Vice-Chairman of the South-South Monarchs Forum.

He commended the monarchs for their understanding approach to his administration’s ongoing economic reforms, particularly the removal of the fuel subsidy.

President Tinubu assured the traditional rulers in the South-South geopolitical zone that his administration was committed to addressing their concerns over development and environmental degradation.

The president told the royal fathers that his administration was working, both domestically and internationally, to strengthen Nigeria’s durability and approach to climate change, environmental restoration, infrastructure development, all while ensuring security and stability in the region.

In his remarks, His Royal Majesty, Major-General Mujakperuo appealed to President Tinubu to follow up on all developmental efforts in the region to be sure that progress is tangible to the people.

“Mr. President, you know the problems of our region as an expert with experience in the energy industry. We see you working hard to solve our problems, and we are comforted that you have pledged to take on our concerns and bring a final solution to them,” the South-South Monarchs Forum Vice-Chairman said.

Meanwhile, the Federation Account Allocation Committee (FAAC) has shared a total of N1.1 trillion December 2023 allocation to the Federal Government, States and Local Government councils.

This was contained in a communiqué issued at the end of the Federation Account Allocation Committee (FAAC) meeting for January 2024, a statement by the Director of Press and Public Relations under the Office of the Accountant General of the Federation, Bawa Mokwa, said Tuesday.

The meeting was reportedly chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein.

The N1,127.408 billion total distributable revenue comprised distributable statutory revenue of N363.188 billion, distributable Value Added Tax (VAT) revenue of N458.622 billion, Electronic Money Transfer Levy (EMTL) revenue of N17.855 billion and Exchange Difference revenue of N287.743 billion.

Last December, the total deductions for cost of collection was N62.254 billion; total transfers, interventions and refunds was N484.568 billion.

The balance in the Excess Crude Account (ECA) for last month was put at $473,754.57

The full statement titled; FAAC SHARES N 1,127.408 BILLION DECEMBER 2023 REVENUE TO FG, STATES AND LGCS, reads:

The Federation Account Allocation Committee (FAAC) has shared a total sum of N1,127.408 billion December 2023 Federation Account Revenue to the Federal Government, States and Local Government Councils.

This was contained in a communique issued by the FAAC at its January 2024 meeting, chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein.

According to the communique, total revenue of N1,674.230 billion was available in the month of December 2023. Total deductions for cost of collection was N62.254 billion; total transfers, interventions and refunds was N484.568 billion.

Gross statutory revenue of N875.382 billion was received for the month of December 2023. This was lower than the N882.560 billion received in the month of November 2023 by N 7.178 billion.

The gross revenue available from the Value Added Tax (VAT) in December 2023 was N492.506 billion. This was higher than the N360.455 billion available in the month of November 2023 by N132.051 billion.

The communique stated that from the N1,127.408 billion total distributable revenue, the Federal Government received a total of N383.872 billion, the State Governments received N396.693 billion and the Local Government Councils received N288.928 billion.

A total sum of N57.915 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.

From the N363.188 billion distributable statutory revenue, the Federal Government received N173.729 billion, the State Governments received N88.118 billion and the Local Government Councils received N67.935 billion. The sum of N33.406 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.

The Federal Government received N68.793 billion, the State Governments received N229.311 billion and the Local Government Councils received N160.518 billion from the N458.622 billion distributable Value Added Tax (VAT) revenue.

The N17.855 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N2.678 billion, the State Governments received N8.928 billion and the Local Government Councils received N6.249 billion.

The Federal Government received N138.672 billion from the N 287.743 billion Exchange Difference revenue. The State Governments received N70.336 billion, and the Local Government Councils received N54.226 billion. The sum of N24.509 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.

In the month of December 2023, Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), Value Added Tax (VAT) and Electronic Money Transfer Levy (EMTL) increased significantly, while Oil and Gas Royalties decreased substantially. Import Duty and CET Levies decreased marginally.

The balance in the ECA was $473,754.57a