FG, States, and Councils share N1.149 trillion for January 2024.
In January 2024, the Federation Account received a total of N2.068 trillion in revenue.
Deductions for collection costs totaled N78.412 billion, with total transfers, interventions, and refunds of N639.926 billion and savings of N200.000 billion.
The FAAC allocated N1.149 trillion from the January 2024 Federation Account Revenue to the Federal Government, States, and Local Government Councils after deducting the total revenue.
This indicates that the federal government saved N919 billion in the special account set up following the elimination of gasoline subsidies, as announced by President Bola Ahmed Tinubu in May 2023.
The Excess Crude Account (ECA) balance remains at $473,754.57.
Bawa Mokwa, Director Press and Public Relations in the Office of the Accountant General of the Federation (OAGF), stated on Thursday in Abuja that “the revenue was shared at the February 2024 meeting of the Federation Accounts Allocation Committee (FAAC), chaired by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun.”
According to Mokwa, the N1.149 trillion total distributable revenue included N463.079 billion in distributable statutory revenue, N391.787 billion in distributable value-added tax (VAT), N15.922 billion in electronic money transfer levy (EMTL), and N279.028 billion in exchange difference revenue.
Interestingly, the federation account profited (N279.028 billion) from the January naira drop. The inflow of N279.028 billion from exchange rate differentials in January 2024 represents the gains realised from favourable exchange rate movements on foreign currency transactions or investments translated into local currency, thereby improving the federation account’s financial position.
“In other words, the dollar rate at which the nation sold crude oil benefited the federation account when the naira declined.”
According to the OAGF spokeswoman, N1.151 trillion in gross statutory revenue was received in January 2024.”This exceeded the sum of N875.382 billion received in December 2023 by N276.426 billion,” he stated.
“The gross revenue from the Value Added Tax (VAT) in January 2024 was N420.733 billion. “This was N71.773 billion less than the N492.506 billion available in December 2023,” he said.
According to him, “the communiqué indicated that from the total distributable revenue of N1,149 trillion, the Federal Government received a total of N407.267 billion, State Governments received N379.407 billion, and Local Government Councils received N278.041 billion.”