THURSDAY March 13, 2025 |TheNewsDESK
The Federation Account Allocation Committee, FAAC, at its recent 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 and Electronic Money Transfer Levy, the Federal Government received 552.591 billion, the States received 590.614 billion, the Local Government Councils got 434.567 billion, while the Oil Producing States received 125.284 billion as Derivation, (13% of Mineral Revenue).
The sum of 107.786 billion was given for the cost of collection, while 830.663 billion was allocated for Transfers Intervention and Refunds.
According to SweetCRUDE reports, 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 for the month of January 2025, was 771.886 billion as against 849.561 billion distributed in the preceding month, resulting in an increase of 122.325 billion.
From that amount, the sum of 30.875 billion was allocated for the cost of collection and the sum of 22.230 billion given for Transfers, Intervention and Refunds. The remaining sum of 718.781 billion was distributed to the three tiers of government, of which the Federal Government got 107.817 billion, the States received 359.391 billion and Local Government Councils got 251.573 billion.
Accordingly, the Gross Statutory Revenue of 1.848 trillion received for the month was higher than the sum of 1.226 trillion received in the previous month by 622.125 billion. From the stated amount, the sum of 76.055 billion was allocated for the cost of collection and a total sum of 1.022 trillion for Transfers, Intervention and Refunds.
The remaining balance of 749.727 billion was distributed as follows to the three tiers of government: Federal Government got the sum of 343.612 billion, States received 174.285 billion, the sum of 134.366 billion was allocated to LGCs and 97.464 billion was given to Derivation Revenue (13% Mineral producing States).
Also, the sum of 21.404 billion from Electronic Money Transfer Levy was distributed to the three tiers of government as follows: the Federal Government received 3.082 billion, States got 7.192 billion, Local Government Councils received 10.274 billion, while N0.856 billion was allocated for Cost of Collection.
The Communique also mentioned an Augmentation of the sum of 214.000 billion which was distributed to the three tiers of Government as follows: Federal government got 98.080 billion, the State received 49.747 billion, the LGCs got 38.353 billion, while the Oil producing States received N27.820 billion.
Value Added Tax, Petroleum Profit Tax, Companies Income Tax, Excise Duty, Import Duty and CET Levies increased significantly, while Electronic Money Transfer Levy 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 749.727 billion, Value Added Tax of 718.781 billion, 20.548 billion from Electronic Money Transfer Levy, and an Augmentation of N214.000 billion bringing the total distributable amount for the month to N1.703 trillion
