The Federal Government, States, and Local Government Councils shared a total of ₦1.424 trillion from the December 2024 Federation Accounts Revenue, as disclosed during the January 2025 Federation Account Allocation Committee (FAAC) meeting in Abuja.
The breakdown of the distributable revenue was as follows: ₦386.124 billion from statutory revenue, ₦604.872 billion from Value Added Tax (VAT), ₦31.211 billion from the Electronic Money Transfer Levy (EMTL), and ₦402.714 billion from Exchange Difference revenue.
Revenue Performance and Comparisons
A communiqué issued after the meeting revealed that the total gross revenue for December 2024 amounted to ₦2.310 trillion. However, deductions for the cost of collection, refunds, and interventions reduced the amount available for distribution. This represented a significant decrease from November 2024’s gross revenue of ₦1.827 trillion, a shortfall of ₦600.988 billion.
The VAT revenue for December 2024 stood at ₦649.561 billion, reflecting an increase of ₦20.588 billion compared to November’s ₦628.973 billion. On the other hand, revenues from sources such as Oil and Gas Royalty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), and Import Duty experienced significant declines.
Distribution Breakdown
From the ₦1.424 trillion total allocation, the Federal Government received ₦451.193 billion, while State Governments were allocated ₦498.498 billion. Local Government Councils received ₦361.754 billion, and a further ₦113.477 billion was distributed to oil-producing states as 13% derivation revenue.
- Statutory Revenue (₦386.124 billion):
- Federal Government: ₦167.690 billion
- State Governments: ₦85.055 billion
- Local Government Councils: ₦65.574 billion
- Derivation for oil-producing states: ₦67.806 billion
- VAT Revenue (₦604.872 billion):
- Federal Government: ₦90.731 billion
- State Governments: ₦302.436 billion
- Local Government Councils: ₦211.705 billion
- Electronic Money Transfer Levy (₦31.211 billion):
- Federal Government: ₦4.682 billion
- State Governments: ₦15.605 billion
- Local Government Councils: ₦10.924 billion
- Exchange Difference Revenue (₦402.714 billion):
- Federal Government: ₦188.090 billion
- State Governments: ₦95.402 billion
- Local Government Councils: ₦73.551 billion
- Derivation for oil-producing states: ₦45.671 billion
Economic Trends and Challenges
The communiqué noted a surge in revenues from VAT and EMTL, reflecting growth in economic activity in these areas. However, the substantial decline in revenues from Oil and Gas Royalty, Petroleum Profit Tax (PPT), and other sources highlights ongoing challenges in the petroleum sector and broader economic pressures.
The FAAC meeting also reviewed achievements from the 2024 fiscal year, including progress in midstream and downstream infrastructure development funded by recent revenue allocations.
Government Commitments
Bawa Mokwa, the Director of Press and Public Relations, Office of the Accountant General of the Federation, emphasised that the government remains committed to ensuring efficient revenue utilisation to address national development priorities.
This allocation provides much-needed funding to support public services, infrastructure projects, and economic reforms at all levels of government. However, the disparities in revenue performance underline the need for continued diversification of Nigeria’s revenue base to reduce reliance on oil and gas earnings.