Business

FAAC: FG, States, LGCc Share N 1,289 Trillion From a Gross Total Of N2.258 Trillion For Month of September

Published

8 hours ago

October 17, 2024

Joel Ajayi
The Federation Account Allocation Committee (FAAC), at its October 2024 meeting chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total sum of N1.298 Trillion to the three tiers of government as Federation Allocation for the month of September, 2024 from a gross total of N2.298 Trillion.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED and Augmentation of N150.000 billion, the Federal Government received N424.867 Billion, the States received N453.724 Billion, the Local Government Councils got N329.864Billion, while the Oil Producing States received N90.415 Billion as Derivation, (13% of Mineral Revenue).

The sum of N80.993 Billion was given for the cost of collection, while N878.946 Billion was allocated for Transfers Intervention and Refunds.

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 (VAT) for the month of September 2024, was N583.675 Billion as against N573.341 Billion distributed in the preceding month, resulting in a increase.

From that amount, the sum of N23.347 Billion was allocated for the cost of collection and the sum of N16.810 Billion given for Transfers, Intervention and Refunds.

The remaining sum of N543.518 Billion was distributed to the three tiers of government, of which the Federal Government got N81.258 Billion, the States received N271.759 Billion and Local Government Councils got N190.231 Billion.

Accordingly, the Gross Statutory Revenue of N1.043 Trillion received for the month was lower than the sum of N1.221 Trillion received in the previous month by N177.426 Billion. From the stated amount, the sum of N56.878 Billion was allocated for the cost of collection and a total sum of N862.136 Billion for Transfers, Intervention and Refunds.

The remaining balance of N124.718 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N43.037 Billion, States received N21.829 Billion, the sum of N16.829 Billion was allocated to LGCs and N43.021 Billion was given to Derivation Revenue (13% Mineral producing States).

Also, the sum of N19.213 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.767 Billion, States got N9.222 Billion, Local Government Councils received N6.456 Billion, while N0.768 Billion was allocated for Cost of Collection.

The Communique also disclosed the sum of N462.191 Billion from Exchange Difference, which was shared as follows: Federal Government received N218.515 Billion, States got N110.834 Billion, the sum of N85.448 Billion was allocated to Local Government Councils, N47.394 Billion was given for Derivation (13% of Mineral Revenue).

It further disclosed of the Augmentation of N150.000 Billion which was shared as follows:Federal Government received N70.020 Billion, the States got N40.080 Billion and the LGCs received N30.900 Billion.

Oil and Royalty, Excise Duty, Electronic Money Transfer (EMTL) and CET levies increased considerably. While Value Added Tax (VAT) and Import Duty increased marginally. Petroleum Profit Tax (PPT) and Company Income Tax (CIT) and others recorded significant decreases.

According to the Communique, the total revenue distributable for the current month of September 2024, was drawn from Statutory Revenue of N124.716 Billion, Value Added Tax (VAT) of N534.518 Billion, N18.445 Billion from Electronic Money Transfer Levy (EMTL), N462.191 Billion from Exchange Difference and Augmentation of N150.000 Billion, bringing the total distributable amount for the month to N1.298 Trillion.

The balance in the Excess Crude Account (ECA) as at October 2024 stands at $473.754.

In his opening remarks, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, restated the President Bola Ahmed Tinubu-led Administration’s commitment to implementing policies, programmes and initiatives that will enhance revenue generation with a view to enhancing the overall well-being of Nigerians in line with contemporary realities.

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Business

Traditional Council Pillars of Stability and Development – RMAFC Chairman

Published

1 week ago

October 9, 2024

The Gleamer

Joel Ajayi

Chairman Revenue Allocation Mobilization And Fiscal Commission Mohamed Bello Shehu OFR, has described the traditional rulers as not only the custodians of tradition and culture but Pillars of Stability and Development in Nigeria.

The Chairman made this remark when some traditional rulers from Nasarawa State, led by His Royal Highness Abdullahi Amegwa, the Osana of Keana paid him a courtesy visit in his office in Abuja.

He said, ” Prior to the colonial era, the system of government that existed in Nigeria was controlled by the traditional rulers in our various societies. The remarkable role they played not only as custodians of culture and traditions but also as development agents in various societies that formed what is known as Nigeria today can not be overemphasized. “

He therefore stressed the need to recognise the rightful position of the royal fathers and accord them a better role that will enable them to perform optimaly.

According to Shehu ” We did not get things right with the Local Government (LG) reforms of 1976 and we did not get it right with the 1999 Constitution of Nigeria (as ammended) but I only hope and pray that the present attempt at reforming the Constitution will place a bigger role on the traditional rulers and be able to also find a way not only to fund it but to sustain it so that they will be able to hold the society together as they have done over the years”.

Earlier, Dr. Samson Gamu Yare, the Chun Mada of Akwanga who spoke on behalf of the leader of the delegation, disclosed that the inter – face with the Commission emanated from the deliberation of the Council of Chiefs in Nasarawa State, which was endorsed by the Executive Governor, His Excellency, Engineer Abdullahi Sule .

He explained that they were in the Commission to request that the 5% of the allocation to local governments, which is constitutionally approved for traditional councils, should be deducted from the source and allocated directly to the respective traditional rulers to ensure proper accountability and compliance.

The royal father said, “Even with the improvement in statutory allocation, the 5 percent allocated to Traditional Councils has continued to experience decline and that for us is a serious concern. This called for the interface and pleading from the traditional council for the commission to consider deducting the 5% charge from the source and disbursing it to the traditional councils.

“Past experiences show that the Modus operandi of deductions where any kind of formular is applied with regard to the implementation strategy is unacceptable. “

He commended President Bola Ahmed Tinubu for the resilience and courage to identify with the grass root to ensure that the third tier of government is given its rightful place of pride following the Supreme Court ruling, which granted financial autonomy to Local governments as provided in the constitution of Nigeria.

He also congratulated the Chairman of the Commission and the Hon. Members for being found worthy to serve the Country in this capacity.

Speaking on the issue, some Members and Directors of the Commission at the occasion emphasised the need for clear a policy on the deduction and allocation of the 5% entitlement to the traditional councils.

After an exhaustive deliberation, the royal fathers were advised to formally write a letter to the Presidential Committee on Local Government Autonomy and copy the Commission for actionable recommendation to the Committee.

Other members of the delegation were His Royal Highness, Mahmoud Umar Bwalla, the Sangarin Shabu and His Royal Highness, Pham. Luka Panya Baba, the Esu Karu.

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