FAAC disburses N1.7tn to FG, States, LGs as oil revenue boosts november allocation

The Federation Accounts Allocation Committee (FAAC) has disbursed a total of N1.727 trillion among the Federal Government, states, and local government areas for November, marking a significant increase driven by higher oil and gas revenue.

This was revealed in a communiqué issued after the FAAC meeting held on Thursday in Abuja, where it was noted that the total gross revenue for November stood at N3.143 trillion.

The revenue surge was largely attributed to increases in Oil and Gas Royalty as well as CET Levies, while other revenue sources such as Value Added Tax (VAT), Excise Duty, Import Duty, and Companies Income Tax saw notable declines.

“Total deduction for cost of collection was N103.307 billion, while total transfers, interventions, and refunds was N1.312 trillion.

“This is higher than the sum of N1.336 trillion received in the month of October 2024 by N490.339 billion.

“Gross revenue of N628.972 billion was available from the VAT in November. This was lower than the N668.291 billion available in the month of October by N39.318 billion.”

From the total distributable revenue, the Federal Government received N581.856 billion, states received N549.792 billion, and local government councils got N402.553 billion. An additional N193.291 billion was allocated to oil-producing states as 13 percent derivation revenue.

“The LGCs received the sum of N402.553 billion, and a total sum of N193.291 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.”

The communiqué further disclosed that statutory revenue for the month amounted to N455.354 billion, marking a sharp increase compared to October. However, VAT collections dipped to N628.972 billion in November, reflecting a decline of N39.318 billion from the previous month.

“From the N585.700 billion VAT revenue, the Federal Government received N87.855 billion, the state governments received N292.850 billion, and the LGCs received N204.995 billion.

“A total sum of N2.257 billion was received by the Federal Government from the N15.046 billion EMTL. The state governments received N7.523 billion, and the LGCs received N5.266 billion.”

Despite the decline in non-oil revenue, the significant boost in oil-related earnings underpinned the overall revenue rise. Analysts suggest the increase reflects improved oil production and favorable exchange rates, though the drop in VAT and other taxes highlights ongoing economic challenges.

The FAAC meeting also revealed that a total of N1.312 trillion was deducted for transfers, interventions, and refunds, while N103.307 billion was set aside as the cost of revenue collection.

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