Federal Allocation Hits N1.298 Trillion for September 2024: Breakdown Revealed

The Federation Accounts Allocation Committee (FAAC) has announced the distribution of N1.298 trillion to the Federal Government, States, and Local Governments for September 2024, a vital financial boost as the country grapples with economic challenges.

In a statement from the Office of the Accountant General, Bawa Mokwa, the distribution, revealed during the FAAC meeting in Abuja, includes various revenue streams: N124.716 billion from statutory revenue, N543.518 billion from Value Added Tax (VAT), and N462.191 billion from Exchange Difference revenue.

Also, the allocation includes N18.445 billion from the Electronic Money Transfer Levy and a N150 billion augmentation.

“Despite a total revenue of N2.258 trillion available in September, we experienced notable deductions, with costs of collection reaching N80.993 billion and transfers totaling N878.946 billion,” Mokwa stated.

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The communiqué highlighted that the Federal Government received N424.867 billion, while State Governments and Local Government Councils received N453.724 billion and N329.864 billion, respectively.

A further N90.415 billion was allocated to States as derivation revenue, amounting to 13% of mineral revenue.

Comparing the revenue streams, gross statutory revenue fell by N177.426 billion from August’s figures, now at N1.043 trillion. In contrast, VAT revenue saw a modest increase, rising to N583.675 billion from the previous month.

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The allocations for September reflect a complex financial landscape, with increases noted in oil and gas royalties and electronic money transfer levies, while petroleum profit tax and companies income tax showed significant declines.

“As we navigate these turbulent financial waters, the support from these allocations remains crucial for ensuring sustainable development across all levels of government,” Mokwa added.