Do you know that a huge amount is allocated monthly to the three tiers of government for proper governance?
Yet it would not be wrong to say that development and progress in Nigeria are retarded. Then you ask; what are the huge allocations from the federation account used for.
Are these allocations for personal use, sharing with cronies, or to improve the quality of life?
These are questions begging for answers.
The December 2023 federal revenue of ₦1.127 trillion has been shared among the Federal Government, states, and Local Government Councils (LGCs).
This was revealed by the Accountant General of the Federation, Dr Oluwatoyin Madein, in a communique.
The communique showed that ₦1.127 trillion was disbursed by the Federation Account Allocation Committee (FAAC) to the three tiers of government.
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FG, States, LGs Share ₦1.127 trillion
All the tiers of government shared in the statutory revenue of ₦363.188 billion, and Value Added Tax (VAT) revenue of ₦458.622 billion.
Electronic Money Transfer Levy (EMTL) revenue of ₦17.855 billion and Exchange Difference revenue of ₦287.743 billion were also shared.
Furthermore, the Accountant General to the federation said: “Total revenue of ₦1.674 billion was available in December 2023.
“Total deduction for the cost of collection was ₦62.254 billion; total transfers, interventions, and refunds were pegged at ₦484.568 billion.
“Gross statutory revenue of ₦875.382 billion was received.
“This was lower than the ₦882.56 billion received in November 2023 by ₦7.178 billion.
“The gross revenue available from VAT was ₦492.506 billion, which is higher than ₦360.455 billion realised in November 2023 by ₦132.051 billion”.
Breakdown Of Allocation
Moreso, from the ₦1.127 trillion total revenue, the federal government received ₦383.872 billion, the state governments received ₦396.693 billion and the LGCs received ₦288.928 billion.
“A total sum of ₦57.915 billion (13% of mineral revenue) was shared among the benefiting states as derivation revenue.
“From the ₦363.188 billion statutory revenue, the federal government received ₦173.729 billion, the state governments received ₦88.118 billion and the LGCs received ₦67.935 billion.
States Benefitted From Mineral Revenue
“The sum of ₦33.406 billion (13% of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.
Furthermore, FAAC stated that “the federal government received ₦68.793 billion, the state governments received ₦229.311 billion.
Also, the LGCs received ₦160.518 billion from the ₦458.622 billion distributable VAT revenue.
“From the ₦17.855 billion EMTL, the federal government received ₦2.678 billion, the state governments received N8.928 billion and the LGCs received ₦6.249 billion,” it said.
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In December 2023, Companies’ Income Tax, excise duty, Petroleum Profit Tax, VAT, and EMTL increased significantly.
Meanwhile, the royalties generated from oil and gas decreased substantially.
“Import duty and CET levies decreased marginally. The balance in the ECA was $473.754 million,” the committee further stated.
