*FAAC shares N1.703trn January 2025 revenue to FG, States, LGs
* Figure represents N279bn compared to N1.424trn shared from Dec 2024 revenue
*FG received N552.591bn; states got N590.614bn, and LG 434.567bn
* Revenue from VAT was N771.886bn, while N20.548bn was realized from Electronic Transfer Levy
By Onu Okorie
The Federation Account Allocation Committee (FAAC), at its February 2025 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total sum of N1.703 Trillion to the three tiers of government as Federation Allocation for the month of January 2025 from a gross total of N2.641 Trillion.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT) and Electronic Money Transfer Levy (EMTL), the Federal Government received N552.591 Billion, the States received N590.614 Billion, the Local Government Councils got N434..567 Billion, while the Oil Producing States received N125.284 Billion as Derivation, (13% of Mineral Revenue).
The sum of N107.786 Billion was given for the cost of collection, while N830.663 Billion was allocated for Transfers Intervention and Refunds.
The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of January 2025, was N771.886 Billion as against N849.561Billion distributed in the preceding month, resulting in an increase of N122.325 Billion.
From that amount, the sum of N30.875 Billion was allocated for the cost of collection and the sum of N22.230 Billion given for Transfers, Intervention and Refunds. The remaining sum of N718.781 Billion was distributed to the three tiers of government, of which the Federal Government got N107.817 Billion, the States received N359.391 Billion and Local Government Councils got N251.573 Billion.
Accordingly, the Gross Statutory Revenue of N1.848 Trillion received for the month was higher than the sum of N1.226 Trillion received in the previous month by N622.125 Billion. From the stated amount, the sum of N76.055 Billion was allocated for the cost of collection and a total sum of N1.022 Trillion for Transfers, Intervention and Refunds.
The remaining balance of N749.727 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N343.612 Billion, States received N174.285 Billion, the sum of N134.366 Billion was allocated to LGCs and N97.464 Billion was given to Derivation Revenue (13% Mineral producing States).
Also, the sum of N21.404 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N3.082 Billion, States got N7.192 Billion, Local Government Councils received N10.274 Billion, while N0.856 Billion was allocated for Cost of Collection.
The Communique also mentioned an Augmentation of the sum of N214.000 Billion which was distributed to the three tiers of Government as follows: Federal government got N98.080 Billion, the State received N49.747 Billion, the LGCs got N38.353 Billion, while the Oil producing States received N27.820 Billion.
Value Added Tax(VAT), Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty and CET Levies increased significantly, while Electronic Money Transfer Levy (EMTL) and Oil and Gas Royalty decreased considerably.
According to the Communique, the total revenue distributable for the current month of January 2025, was drawn from Statutory Revenue of N749.727 Billion, Value Added Tax (VAT) of N718.781 Billion, N20.548 Billion from Electronic Money Transfer Levy (EMTL), and an Augmentation of N214.000 Billion bringing the total distributable amount for the month to N1.703 Trillion
RMAFC seeks solutions to dwindling allocation for sustainable revenue generation
Mohammed Shehu, the chairman of the Revenue Mobilisation Allocation and Fiscal Commission, has called for an urgent need to address dwindling allocations for sustainable revenue generation.
Mr Shehu also called for effective collaboration among relevant stakeholders to develop innovative revenue strategies to meet public service demands at all levels of government.
He made the call on Wednesday in Abuja at a two-day training programme.
The RMAFC chairman said the commission’s constitutional mandate was to advise the three tiers of government on fiscal efficiency and revenue enhancement.
Mr Shehu said strengthening revenue generation was no longer an option but necessary for economic stability and sustainable development.
According to him, the training is designed to equip government officials and stakeholders with the necessary knowledge and skills to improve revenue mobilisation, budgeting and fiscal management.
Mr Shehu acknowledged the importance of strong partnerships with various stakeholders and efficient fiscal management in enhancing revenue generation.
He said the programme would provide a platform for participants to engage with experts and explore best practices in revenue optimisation.
“We must move beyond traditional revenue sources and explore new frontiers to boost fiscal sustainability.
“At the end of this training, participants are expected to have a deeper understanding of revenue generation challenges and opportunities.
“The training will help them to acquire practical skills in revenue mobilisation and management and develop strategic partnerships to enhance revenue generation,” said Mr Shehu.
Mr Shehu also mentioned that the participants would be able to identify innovative solutions to address revenue shortfalls by leveraging areas of comparative advantage.
He urged all stakeholders to take full advantage of the training, emphasising that achieving fiscal sustainability requires proactive measures, collaboration and a commitment to good governance.
