December 2024 Revenue Drop: FG, States, LGAs Share N1.424 Trillion Amid Economic Shifts

By Achimi muktar

In a sharp contrast to the N1.727 trillion shared in November 2024, the Federal Government, States, and Local Government Councils have distributed a total of N1.424 trillion in revenue for December 2024—a 17.54% decline amounting to N303 billion.

The Federation Account Allocation Committee (FAAC) finalized the allocation during a meeting in Abuja on Friday, January 17, 2025. Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation (OAGF), released the details in an official statement.

Revenue Components and Deductions

The distributable revenue was derived from multiple streams:

Statutory revenue: N386.124 billion

Value Added Tax (VAT): N604.872 billion

Electronic Money Transfer Levy (EMTL): N31.211 billion

Exchange Difference revenue: N402.714 billion

The gross revenue for the month was N2.310 trillion. However, deductions included N84.780 billion for the cost of collection and N801.175 billion for transfers, interventions, and refunds.

Decline in Statutory Revenue, Growth in VAT

Gross statutory revenue saw a significant dip, falling to N1.226 trillion in December from N1.827 trillion in November—a drop of N600.988 billion. Meanwhile, VAT revenues rose by N20.588 billion, reaching N649.561 billion, compared to N628.973 billion the previous month.

Distribution Breakdown

From the total distributable revenue of N1.424 trillion:

Federal Government: N451.193 billion

States: N498.498 billion

Local Government Councils: N361.754 billion

Mineral derivation (13%): N113.477 billion for benefiting states

Statutory revenue contributed N386.124 billion, with N167.690 billion going to the Federal Government, N85.055 billion to States, and N65.574 billion to Local Government Councils. Benefiting states received an additional N67.806 billion in derivation revenue.

VAT and EMTL Allocations

VAT revenues accounted for N604.872 billion:

Federal Government: N90.731 billion

States: N302.436 billion

Local Government Councils: N211.705 billion

The EMTL revenue of N31.211 billion was shared as follows:

Federal Government: N4.682 billion

States: N15.605 billion

Local Government Councils: N10.924 billion

Exchange Difference Revenue

From the N402.714 billion Exchange Difference revenue:

Federal Government: N188.090 billion

States: N95.402 billion

Local Government Councils: N73.551 billion

Mineral derivation (13%): N45.671 billion

Economic Insights

The communiqué highlighted mixed revenue trends. While VAT and EMTL revenues increased, there were notable declines in Oil and Gas Royalty, CET Levies, Excise Duty, Import Duty, Petroleum Profit Tax (PPT), and Companies Income Tax (CIT).

As economic shifts continue to impact revenue generation, stakeholders remain focused on balancing resource distribution to sustain fiscal stability.