Administrative lapses have thrown spanners into the planned first direct revenue allocation to the 774 local governments from the federation account, The Nation gathered last night.

The LGs have a total of N361.754 billion as their share of distributable revenue from the N1.424 trillion due to the three tiers of government this month.

The Federal Government had planned to commence direct payment of the LGs? revenue allocation into their accounts from this month, but at the just concluded January 2025 Federation Account Allocation Committee (FAAC) meeting in Abuja, it was confirmed that the councils had failed to submit the necessary bank account details required to facilitate the direct payments.

?The structures are yet to be erected,? a source familiar with the development said yesterday, referring to the absence of accounts specifically opened with the Central Bank of Nigeria (CBN) for this purpose.

?The LGAs have to be coordinated. Those that have opened accounts with the CBN did not submit their details to FAAC for crediting, resulting in the delay.

?If this information is not ready, they will not be paid. But if they produce it, they will be paid.?

Another source suggested that political interference and delay in conducting local government elections in some states may have also contributed to the development.

?The LGAs may have been handicapped by the maneuvering of state governments and the ongoing elections to elect local government officials recognised by law to spend the money,? the source noted.

The Nation gathered that FAAC officials expect the LGs to resolve the administrative bottlenecks by the end of the month to enable them receive their allocations.

Following the July 2024 ruling of the Supreme Court granting the LGAs financial autonomy, the Federal Government directed the councils to open accounts with the CBN for the purpose of receiving their monthly allocation from the federation account.

FG, States, LGAs share N1.424trn in January, 2025

The Director of Press and Public Relations at FAAC, Bawa Mokwa, confirmed yesterday that a total of N1.424 trillion, being the Federation Account Revenue for December 2024, was shared by Federal Government, states and local governments.

According to Mokwa, the distributable revenue comprised N386.124 billion from statutory revenue, N604.872 billion from Value Added Tax (VAT), N31.211 billion from Electronic Money Transfer Levy (EMTL) and N402.714 billion from exchange difference revenue.

Total gross revenue for December 2024 was put at N2.310 trillion, from which N84.780 billion was deducted for collection costs, while N801.175 billion was allocated for transfers, interventions and refunds.

The gross statutory revenue for December 2024 stood at N1.226 trillion, representing a decline of N600.988 billion from the N1.827 trillion recorded in November 2024. In contrast, VAT collections increased with December 2024 gross revenue at N649.561 billion, exceeding November 2024?s N628.973 billion by N20.588 billion.

From the total distributable revenue of N1.424 trillion, the Federal Government received N451.193 billion, state governments received N498.498 billion and local government councils received N361.754 billion.

An additional N113.477 billion, representing 13 per cent derivation revenue, was shared among the oil-producing states.

Out of the N386.124 billion distributable statutory revenue, the Federal Government received N167.690 billion, state governments received N85.055 billion, and local government councils received N65.574 billion, with N67.806 billion allocated to oil-producing states as derivation revenue.

For the N604.872 billion distributable VAT revenue, the Federal Government received N90.731 billion, state governments received N302.436 billion, and local government councils received N211.705 billion.

From the N31.211 billion Electronic Money Transfer Levy (EMTL), the Federal Government received N4.682 billion, state governments received N15.605 billion, and local government councils received N10.924 billion.

Additionally, the N402.714 billion exchange difference revenue was shared with the Federal Government receiving N188.090 billion, state governments receiving N95.402 billion, and local government councils receiving N73.551 billion, while oil-producing states were allocated N45.671 billion as derivation revenue.

The communiqu? noted that while there was a significant increase in VAT and EMTL collections, revenues from Oil and Gas Royalty, CET Levies, Excise Duty, Import Duty, Petroleum Profit Tax (PPT), and Companies Income Tax (CIT) experienced considerable declines.

The FAAC reiterated its commitment to ensuring equitable and transparent revenue sharing among all tiers of government to foster economic growth and development. (The Nation)

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