NGF Backs Direct Federation Account Oil Revenue Reforms

The Nigeria Governors’ Forum has thrown its weight behind Executive Order 9 signed by President Bola Ahmed Tinubu, describing direct remittance of oil and gas revenues into the Federation Account as essential for fiscal transparency, predictability, and constitutional alignment across federal, state, and local governments.

FG Allocates N1.727 Trillion to State Governments in November  

In November 2024, the Federal Government distributed N1.727 trillion among federal, state, and local governments, sourced from a gross revenue of N3.143 trillion.  The allocation was decided during the December meeting of the Federation Account Allocation Committee (FAAC), led by Finance Minister Wale Edun.   From the total, the federal government received N581.856 billion, states were allocated N549.792 billion, and local governments got N402.553 billion.  Additionally, N193.291 billion was set aside for oil-producing states as 13% derivation revenue.   The Value Added Tax (VAT) revenue for November stood at N628.972 billion, a drop of N39.318 billion from the previous month.  After deductions for collection costs and transfers, N628.973 billion was shared: N87.855 billion went to the federal government, N292.850 billion to states, and N204.995 billion to local councils.   READ ALSO: Federal Government Monitors Ekpa’s Trial in Finland Gross statutory revenue climbed to N1.827 trillion, an increase of N490.339 billion from October.  Out of this, N455.354 billion was shared among the three tiers, with the federal government receiving N175.690 billion, states N89.113 billion, and local councils N68.702 billion.   Revenue from the Electronic Money Transfer Levy (EMTL) totaled N15.046 billion, with federal, state, and local governments receiving N2.257 billion, N7.523 billion, and N5.266 billion, respectively.  An exchange rate adjustment also added N671.392 billion to the distributable pool, with allocations spread across the three levels of government.   Despite the boost in oil and gas royalties, revenues from other streams like import duties, excise taxes, and electronic transfer levies saw declines.

FAAC: FG, States, LGs Share N906.955bn October Revenue

The Federation Account Allocation Committee (FAAC) has shared the total sum of N906.955 billion Federation Account Revenue to the Federal Government, States and Local Government Councils for the month of October 2023.  A breakdown of the amount according to a communique issued by the FAAC revealed that total distributable revenue comprises statutory revenue of N305.070 billion, Value Added Tax (VAT) of N 323.446 billion, Electronic Money Transfer Levy (EMTL) of N15.552 billion, Exchange Difference of N202.887 billion and Augmentation of N60.000 billion.   According to the communique, total revenue of N1,346.519 billion was available in the month of October 2023. Total deductions for cost of collection was N53.483 billion; total transfers, interventions and refunds was N386.081 billion.    Gross statutory revenue of N 660.090 billion was received for the month of October 2023, lower than the N1,014.953 trillion received in the month of September 2023 by N354.863 billion.   The gross revenue available from the Value Added Tax (VAT) was N347.343 billion, higher than the N303.550 billion available in the month of September 2023 by N43.793 billion.    Of the N906.955 billion, the Federal Government received N323.355 billion, State Governments got 307.717 billion and the Local Government Councils took home N225.209 billion.  The sum of N50.674 billion (13% of mineral revenue) was shared to the relevant States as derivation revenue.  From the N305.070 billion distributable statutory revenue, the Federal Government received N147.574 billion, the State Governments received N74.852 billion and the Local Government Councils received N57.707 billion. The sum of N24.937 billion (13% of mineral revenue) was shared to the relevant States as derivation revenue.  The Federal Government received N48.517 billion, the State Governments received N161.723 billion and the Local Government Councils received N113.206 billion from the N323.446 billion VAT revenue. The N15.552 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N2.333 billion, the State Governments received N7.776 billion and the Local Government Councils received N5.443 billion. The Federal Government received N93.323 billion from the N202.887 billion Exchange Difference revenue. The State Governments received N47.334 billion, and the Local Government Councils received N36.493 billion. The sum of N25.737 billion (13% of mineral revenue) went to the relevant States as derivation revenue.  The Augmentation of N60.000 billion was shared as follows: Federal Government received N31.608, the State Governments received N16.032 billion and the Local Government Councils received N 12.360 billion In the month under review, Import Duty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), CET Levies and Electronic Money Transfer Levy (EMTL) increased significantly while Excise Duties and Companies Income Tax (CIT) recorded considerable decreases. Oil and Gas Royalties decreased marginally.