Jan. 15, 2024

…As oil producing States get ₦50.67 bn from 13% derivation fund

The Federation Account Allocation Committee (FAAC) disbursed N1.35 trillion to the three tiers of government in November 2023 from the total revenue generated in October 2023, the Nigeria Bureau of Statistics reports.

The amount disbursed comprised:
• ₦660.09 billion recorded from the Statutory Account
• ₦262.89 billion from Exchange Gain
• ₦60.00 billion from Non-Oil Revenue
• ₦16.20 billion from Electronic Money Transfer Levy (EMTL), and
• ₦347.34 billion from Value Added Tax.

The allocations to the three tiers of government for November 2023 were:
• Federal Government with a total of ₦323.35 billion
• States with a total of ₦307.72 billion, and
• Local Governments with a total of ₦225.21 billion.

The sum of ₦50.67 billion was shared among the oil-producing states from the 13% derivation fund.

Further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that:
• ₦201.99 billion was disbursed to the FGN consolidated revenue account,
• ₦5.17 billion was received as a share of derivation and ecology,
• ₦2.59 billion as stabilization fund,
• ₦8.69 billion for the development of natural resources, and
• ₦8.47 billion to the Federal Capital Territory (FCT)- Abuja.

However, the revenue generating agencies comprising Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) received ₦16.38 billion, ₦24.59 billion, and ₦12.52 billion respectively, as cost of revenue collections.