Business
FAAC: FG, States, LGCs share N1.142 trillion revenue for February
The three tiers of government have shared the sum of N1.152 trillion statutory for the month of February, 2024.
The tiers of government are, the Federal, States and Local Government Councils.
The revenue was shared on Thursday by the Federation Account Allocation Committee (FAAC) from a gross total of N2.326 trillion at a meeting presided by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun.
The committee under the chairmanship the Minister of Finance and Coordinating Minister of the Economy, Wale Edun made the disbursement at its February 2024 meeting.
A statement signed by the Director of Press and Public Relations in the ministry, Mohammed Manga indicated that the Federal Government received N352.409 Billion, the States received N366.950b the Local Government Councils got N267.153b, while the Oil Producing States received N166.244b as Derivation, (13% of Mineral Revenue).
He pointed out that the stated amount is inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference (ED).
“The sum of N66.456 Billion was given for the cost of collection, N856.937 Billion allocated for Transfers Intervention and Refunds, while the sum of N250.000 Million was saved.
The Communique issued by the Committee at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for February 2024, was N460.487 Billion, which was an increase from the N420.733 Billion distributed in the preceding month, resulting in an increase of N39.755 Billion.
“From that amount, the sum of N18.420 Billion was allocated for the cost of collection and the sum of N13.262 Billion given for Transfers, Intervention and Refunds.
“The remaining sum of N428.806 Billion was distributed to the three tiers of government, of which the Federal Government got N64.321 Billion, the States received N214.403 Billion, Local Government Councils got N150.082 Billion.
According to the statement, the Gross Statutory Revenue of N1,192.428b received in the month was higher than the sum of N1,151.808b received in the previous month of January 2024, N40.620 billion.
Explaining further he said from that amount, the sum of N47.404b was allocated for the cost of collection, a total sum of N843.675b for Transfers, Intervention and Refunds and a total of N200.000b saved.
“The remaining balance of N101.349b was distributed as follows to the three tiers of government: Federal Government got the sum of N7.351b, States received N3.729b, while the sum of N87.394 Billion was allocated to LGCs as Derivation (13% Mineral Revenue).
“Also, the sum of N15.789b from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.274b, States got N7.578b, LGCs received N5.305b, while N0.632b was allocated for Cost of Collection.
The Communique also disclosed N657.444b from Exchange Difference was shared with the Federal Government receiving N278.463b, States got N141.240b, while the sum of N108.891b was allocated to LGCs, N78.850b was given for Derivation (13% of Mineral Revenue) and the sum total of N50.000b was saved.
“Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import Duty, Excise Duty and Customs External Tarrif levies (CET) increased significantly, while Oil and Gas Royalties increased marginally.
“Electronic Money Transfer Levy (EMTL) and Companies Income Tax (CIT) recorded considerable decreases.”
According to the Communique, the total revenue distributable for the current month of February 2024, was drawn from Statutory Revenue of N101.349b, Value Added Tax (VAT) of N428.806b, N15.157b from Electronic Money Transfer Levy (EMTL), and N607.444b from Exchange Difference, bringing the total distributable amount for the month to N1.152 trillion.
The balance in the Excess Crude Account (ECA) as at March 2024 stands at $473,754.57.
In his opening remarks at the meeting, Wale Edun said in the fiscal side, there is a move to raise the forex trading.
He pointed out that President Bola Ahmed Tinubu led administration in its avowed determination to achieve and ensure rapid and sustained economic growth in the country has commenced the intervention programme which is a direct payment to about 15 -17 million poorest and vulnerable Nigerians, after carefully making sure that the system is fraud free, using the Biometric Registration and Digital Registering.
He explained that there is an increase in revenue as he commended the revenue generating agencies for their hard work
Tier-one lender, Fidelity Bank Plc, has once again highlighted the importance of promoting non-oil exports as it recently hosted the 18th edition of its dedicated capacity development training tagged Export Management Programme (EMP 18). The programme, which was held recently in Lagos provided a platform for entrepreneurs interested in exploring global trade opportunities to scale and acquire relevant expertise.
Hosted in partnership with the Lagos Business School (LBS), the 5-day intensive program focused on equipping entrepreneurs with the skills and knowledge needed to explore international market opportunities and strengthen their capacity to thrive in the export sector.
“At Fidelity Bank, our strategy to enhance non-oil exports is guided by the significant opportunities it offers to our customers and the national economy. This is why we offer a comprehensive suite of financial, advisory, and market-access solutions for businesses aiming to engage in international trade.
“Our market-access initiative, EMP, launched in 2016, has trained over 1,600 entrepreneurs. Today, we completed the 18th cohort with high-caliber participants and a 150% oversubscription. This indicates a promising future for Nigeria’s non-oil exports,” explained Isaiah Ndukwe, Divisional Head of Export and Agriculture at Fidelity Bank Plc.
Facilitated by key industry experts in the exports space, EMP 18 took participants through several sessions focused on critical areas in global trade such as Export Finance Instruments, Export Documentation, Accessibility of Export Markets, amongst others.
A key feature of the training was a facility tour of one of Nigeria’s busiest Export Processing Terminals (EPT) located in Ikorodu, Lagos state. The full-day visit, which was anchored by officials of the Nigerian Customs Service (NCS), gave participants a first-hand feel of the necessary procedure and requirements for securing regulatory approval for exporting from Nigeria.
One of the program participants, Patrick Ulayi Awu-Patricks, Managing Director/Chief Executive Officer, Alliance & Frontier Limited, commended Fidelity Bank for its leadership in deploying capacity-building initiatives in the non-oil exports sector. In a discussion with journalists, he stated that EMP 18 provided invaluable exposure to the opportunities in the export business noting that, “There are lots of non-oil exports opportunities and entrepreneurs must be able to identify and capitalize on these to be able to play effectively in the international trade space. This course has given me insights into the power of data which is essential for strategic decision-making.”
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 8.5 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the Export Finance Bank of the Year at the 2023 BusinessDay Awards; the Banks and Other Financial Institutions (BAFI) Awards; Best Payment Solution Provider Nigeria 2023; and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards. It was also recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023 and the Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
The Kogi State Government has assured retirees that pension and gratuity payments are now processed transparently, eliminating the need for personal connections or lobbying before benefits are paid to retirees.
Director-General of the Kogi State Pension Commission, Mariam Abedo, disclosed this in an Exclusive Chat with the Special Adviser on Media, Ismaila Isah who was on a courtesy visit to her office in Lokoja.
She explained that the government has introduced a technology-driven payment system that ensures fairness and efficiency.
“Once a retiree’s documentation is complete, their payment is processed without any influence. We currently process over 200 retirees daily,” she stated.
Abedo further disclosed that the commission has significantly cleared pension arrears as the state has consistently made funds available to meet obligations of retirees.
She emphasized that transparency and accountability have improved the commission’s operations, making the payment process smoother and more reliable.
Abedo also warned retirees against falling victim to individuals who claim they can influence payments of benefits, stressing that all entitlements are processed strictly on merit.
She commended Governor Ahmed Usman Ododo for prioritizing the welfare of pensioners and reassured retirees that payments would continue as funds are available to the commission to pay benefits to retirees in the state.
A leading African payments technology company, Flutterwave and the Federal Inland Revenue Service, FIRS have concluded collaborative discussion to digitize tax collection in Nigeria.
The collaboration is a step initiated by the FIRS to simplify tax compliance by offering multiple payment options, real-time reporting, and offline capabilities for those with limited internet access.
Meanwhile, Flutterwave CEO Olugbenga ‘GB’ Agboola stressed the firm’s commitment to ensure the using of technology to enhance efficiency, transparency, and economic growth by digitizing government tax collections.
Agboola said: “At Flutterwave, we are committed to leveraging technology to drive efficiency and economic growth. By making tax payments easier and more transparent, we are helping to digitize government collections and support national development which is in line with our mission,” he said
The partnership enables businesses and individuals to pay taxes, levies, and other statutory fees through Flutterwave’s secure and efficient digital infrastructure.
Driving transparency and accessibility
The integration introduces several enhancements, including Flutterwave’s Senior VP, Olufunmilayo Olaniyi, highlighted the importance of public sector collaboration in advancing digital payments, fostering trust, and driving innovation in Nigeria.
“Working with the public sector is pivotal to shaping the future of digital payments in Nigeria. This underscores our commitment to delivering solutions that serve Nigerians better, foster trust, and drive impactful innovation through strategic collaboration.”
What you should know
The Nigerian government has been implementing several measures to enhance tax compliance and efficiency, including digital reporting and e-invoicing systems. In line with these efforts, the Federal Inland Revenue Service (FIRS) is set to pilot its “e-Invoice” platform in July 2025 to streamline invoice management and improve real-time visibility into business transactions.
Amid these regulatory shifts, Flutterwave has been strengthening its presence in Nigeria’s financial ecosystem through strategic collaborations. Beyond facilitating tax payments, the company has expanded its role in digital innovation and security. It recently partnered with the National Information Technology Development Agency (NITDA) and Alami to drive digital transformation and empower SMEs in the tech and creative industries.
Also in 2024, Flutterwave deepened its commitment to financial security by partnering with the Economic and Financial Crimes Commission (EFCC) to establish a Cybercrime Research Center at the EFCC Academy.
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