Business

FAAC: FG, States, LGCs Share N1,143.210 Trillion From A Gross Total Of N2,324.792 Trillion For The Month Of May 2024

Published

11 months ago

June 10, 2024

Joel Ajayi

The Federation Account Allocation Committee (FAAC), at its June 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total sum of N1,143.210 Trillion to the three tiers of government as Federation Allocation for the month of May, 2024 from a gross total of N2,324.792 Trillion.

From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference (ED), the Federal Government received N365.813 Billion, the States received N388.419 Billion, the Local Government Councils got N282.476 Billion, while the Oil Producing States received N106.502 Billion as Derivation, (13% of Mineral Revenue).

The sum of N76.647 Billion was given for the cost of collection, while N1104.935 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 May 2024, was N497.665 Billion as against N500.920 Billion distributed in the preceding month, resulting in a decrease of N3.255 Billion.

From that amount, the sum of N19.907 Billion was allocated for the cost of collection and the sum of N14.333 Billion given for Transfers, Intervention and Refunds. The remaining sum of N463.425 Billion was distributed to the three tiers of government, of which the Federal Government got N69.514 Billion, the States received N231.713 Billion, Local Government Councils got N162.199 Billion.

Accordingly, the Gross Statutory Revenue of N1,223.894 Trillion received for the month was lower than the sum of N1,233.498 Trillion received in the previous month of April 2024 by N9.604 Billion. From the stated amount, the sum of N56.109 Billion was allocated for the cost of collection and a total sum of N1,010.602 Trillion for Transfers, Intervention and Refunds.

The remaining balance of N157.183 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N61.010 Billion, States received N30.945 Billion, the sum of N23.857 Billion was allocated to LGCs and N41.371 Billion was given to Derivation Revenue (13% Mineral producing States).

Also, the sum of N15.777 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.272 Billion, States got N7.573 Billion, Local Government Councils received N5.301 Billion, while N0.631 Billion was allocated for Cost of Collection.

The Communique also disclosed the sum of N587.456 Billion from Exchange Difference, which was shared as follows: N80.000 Billion allocated Transfers, Intervention and Refunds, leaving a balance of N507.456 Billion of which the Federal Government received N233.017 Billion, States got N118.189 Billion, the sum of N91.119 Billion was allocated to Local Government Councils, N65.131 Billion was given for Derivation (13% of Mineral Revenue).

Companies Income Tax (CIT) and Petroleum Profit Tax (PPT), increased significantly, Import and Excise Duties, Royalty Crude and Gas, Customs External Tarrif levies (CET),

Electronic Money Transfer Levy (EMTL), and Value Added Tax (VAT) recorded considerably decreases.

According to the Communique, the total revenue distributable for the current month of May 2024, was drawn from Statutory Revenue of N157.183 Billion, Value Added Tax (VAT) of N463.425 Billion, N15.146 Billion from Electronic Money Transfer Levy (EMTL), and N507.456 Billion from Exchange Difference, bringing the total distributable amount for the month to N1,143.210 Trillion.

The balance in the Excess Crude Account (ECA) as at May 2024 stands at $473,754.57.

Share on Facebook

Business

Rising Loan Repayments, Capital Reversals Drive CBN FX Outflows By $1.2bn

Published

21 hours ago

May 12, 2025

The Gleamer

…Surge reflects growing external debt service burden

By Charles Cyril

Capital outflows from Nigeria rose significantly in January 2025, reaching $1.20bn, up from $1.06bn recorded in December 2024.

The increase represents a sustained pressure on the country’s external sector, driven primarily by surging external loan repayments and a notable uptick in capital reversals.
According to the January data, the sharp rise in outflows was largely due to a 27.45% increase in loan repayments, which amounted to $0.65bn during the month.

This surge reflects a growing external debt service burden, as the country continues to meet its obligations amidst tighter global financial conditions, elevated interest rates, and a strong US dollar.

Analysts suggest that these repayments are likely linked to maturing debt instruments and syndicated loans, which were contracted in previous years when global liquidity was more accommodative.

Funds previously invested in the country that are now being pulled out by investors also contributed significantly to the overall outflow.

These reversals rose by 3.85% in January to $0.54bn. The increase in capital reversals, according to findings, may be attributed to heightened investor caution, stemming from macroeconomic uncertainties, policy inconsistencies, and concerns over currency stability.
Some foreign portfolio investors may have opted to exit local markets due to perceived risks or in search of more attractive yields in other emerging or developed markets.

Interestingly, the repatriation of dividends the transfer of profits by foreign-owned companies to their parent firms declined sharply during the period.

According to the CBN data, the value of dividend repatriation fell by 66.67% to just $0.01bn. This sharp drop could be indicative of companies deferring profit remittances amid volatility in foreign exchange markets or regulatory measures aimed at easing pressure on external reserves.

In terms of proportional contribution to the total outflow, loan repayments constituted the largest share at 54.33%.

Capital reversals followed closely, accounting for 44.81%, while repatriated dividends made up a mere 0.85%.

Other forms of capital outflows, including payments for technical services, royalties, and management fees, accounted for the remaining portion.

The rise in capital outflows, particularly in the form of debt repayments, underscores the vulnerability of the country’s balance of payments to external shocks and rising debt obligations.

With international reserves under strain and external financing conditions still tight, policymakers face a delicate task of balancing debt service commitments with the need to support domestic economic growth and currency stability.

Share on Facebook