Breaking: Fuel Subsidy Ends as FG , States and Councils share N1.149 trillion from federation account in January 2024

A total revenue of N2.068 trillion was collected in the month of January 2024 into the Federation Account.

Deductions for cost of collection was N78.412 billion with total transfers, interventions and refunds N639.926 billion and savings N200.000 billion.

As a result of the deductions from the total revenue, the Federation Account Allocation Committee (FAAC) shared N1.149 trillion from the January 2024 Federation Account Revenue to the Federal Government, States and Local Government Councils.

This means the federal government saved N919 billion in the special account created after the end of fuel subsidy was announced by President Bola Ahmed Tinubu in May, 2023.

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

Director Press and Public Relations in the Office of the Accountant General of the Federation (OAGF) Bawa Mokwa in a statement on Thursday in Abuja informed “the revenue was shared at the February 2024 meeting of the Federation Accounts Allocation Committee (FAAC) chaired by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun”.

Mokwa, quoting a communique by FAAC said: “The N1.149 trillion total distributable revenue comprised distributable statutory revenue of N463.079 billion, distributable Value Added Tax (VAT) revenue of N391.787 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.922 billion and Exchange Difference revenue of N279.028 billion.

“Interestingly the federation account benefitted (N279.028 billion) from the January crash of the Naira. The inflow of N279.028 billion from Exchange Rate Differentials in January 2024 signifies the gains realized from favorable exchange rate movements on foreign currency transactions or investments that were translated into the local currency, ultimately boosting the financial position of the federation account.

“In other words, the dollar rate at which the nation sold crude oil resulted as a blessing to the federation account when the Naira fell.”

The OAGF spokesman added that the gross statutory revenue of N1.151 trillion was received for the month of January 2024.

“This was higher than the sum of N875.382 billion received in the month of December 2023 by N276.426 billion,” he said.

“The gross revenue available from the Value Added Tax (VAT) in January 2024 was N420.733 billion. This was lower than the N492.506 billion available in the month of December 2023 by N71.773 billion,” he added.

According to him: “The communique stated that from the N1,149 trillion total distributable revenue, the Federal Government received a total of N407.267 billion, the State Governments received N379.407 billion and the Local Government Councils received N278.041 billion.