The Federation Account Allocation Committee (FAAC) has stated that N1.123 trillion will be distributed to various tiers of government in March 2024 from a variety of revenue sources like as statutory allocations, value-added tax (VAT), and electronic money transfer levies.
 The Office of the Accountant General released a statement, which was signed by Bawa Mokwa, Director (Press and Public Relations), stating that N345.890 billion was obtained by the federal government and N398.689 billion was acquired by state governments. Councils of local government received N288.688 billion in revenue.
Exchange difference revenue (N285.525 billion), VAT (N511.879 billion), EMTL (N14.754 billion), and distributable statutory revenue (N311.233 billion) accounted for the total distributable revenue. N90.124 billion in derivation revenue, or 13% of mineral earnings, was also given to the states.
An analysis of the sources and distribution of revenue
- Gross statutory revenue for March was reported to be N1.017 trillion, a N175.212 billion drop from February’s N1.192 trillion. On the other hand, VAT revenue went up, coming in at N549.698 billion as opposed to N460.488 billion the month before—a rise of N89.210 billion.
- The federal government earned N133.960 billion from the statutory revenue, the states received N67.946 billion, and local government councils received N52.384 billion. N56.943 billion was the derivation revenue from statutory sources. The federal government collected N76.782 billion from the allocation of VAT, states received N255.940 billion, and local government councils received N179.158 billion.
- The EMTL was split, with N5.213 billion going to the federal government, N7.377 billion to the states, and N5.164 billion going to local government councils. The federal government received N132.935 billion from the exchange difference revenue, the states received N67.426 billion, and local government councils received N51.983 billion.
The three tiers of government received only 60% of the total revenue
After deducting collecting costs (N69.537 billion) and transfers, interventions, and refunds (N674.880 billion), the total revenue available as of March 2024 was N1.868 trillion. This indicates that in March 2024, the three levels of government received roughly 60.12% of the total revenue.
The performance of revenue-generating operations was uneven; although excise duty, oil royalty, petroleum profit tax, and other levies experienced drops, import duty, VAT, petrol royalty, and corporate income tax saw increases.
As of the end of March 2024, the Excess Crude Account (ECA) had a balance of $473,754.57. This balance is an essential component of Nigeria’s financial reserves because it acts as a safeguard against changes in the country’s economy brought on by volatile oil prices.
