Federal, State, Local Governments Receive N1.424trn FAAC Disbursement for January

The Federal, State, and Local Governments in Nigeria have received a total sum of N1.424 trillion as part of the January 2025 Federation Account Allocation Committee (FAAC) disbursement, representing the December 2024 federation account revenue.

According to a communiqué issued by FAAC, the total distributable revenue of N1.424 trillion comprised several components:

• Distributable statutory revenue: N386.124 billion
• Distributable Value Added Tax (VAT) revenue: N604.872 billion
• Electronic Money Transfer Levy (EMTL): N31.211 billion
• Exchange Difference revenue: N402.714 billion

The total gross revenue available for December 2024 was N2.310 trillion, with cost of collection amounting to N84.780 billion. Additionally, transfers, interventions, and refunds totaled N801.175 billion.

Breakdown of Disbursement

From the N1.424 trillion distributable revenue, the allocation was as follows:

• Federal Government: N451.193 billion
• State Governments: N498.498 billion
• Local Governments: N361.754 billion
• Mineral Resources Derivation (13%): N113.477 billion

Disbursement Details by Revenue Type

• Statutory Revenue: A total of N386.124 billion was shared, with the federal government receiving N167.690 billion, states getting N85.055 billion, and local governments receiving N65.574 billion. Additionally, N67.806 billion was given to states as derivation revenue (13% of mineral resources).
• VAT Revenue: From the N604.872 billion VAT revenue, the breakdown is as follows:
  • Federal Government: N90.731 billion
  • State Governments: N302.436 billion
  • Local Governments: N211.705 billion
• Electronic Money Transfer Levy (EMTL): The N31.211 billion raised from this levy was allocated as follows:
  • Federal Government: N4.682 billion
  • State Governments: N15.605 billion
  • Local Governments: N10.924 billion
• Exchange Difference Revenue: The N402.714 billion was shared as:
  • Federal Government: N188.090 billion
  • State Governments: N95.402 billion
  • Local Governments: N73.551 billion
  • Derivation Revenue (13%): N45.671 billion

This disbursement represents a significant part of the 2025 national budget and is a key aspect of Nigeria’s financial management, supporting the functioning of federal, state, and local government activities. However, the FAAC meeting also highlighted a decline in the statutory revenue for December 2024, which was lower than the previous month by N600.988 billion.

The NIDCOM report further stressed that VAT revenues saw an increase in December compared to November 2024, indicating a slight growth in the nation’s consumption-based taxation system.