According to the most recent report on the federation’s revenue distribution, the Federation Account Allocation Committee’s (FAAC) gross monthly allocations to the three tiers of government amounted to NGN737bn (USD1.7bn) in November (from October revenue). This represents an increase of c.NGN37bn or +5% from the previous month’s gross payout. Compared with the previous month, the higher revenue was mainly due to an increase of NGN23bn (+12% m/m) in value-added tax (VAT) to NGN213bn. In contrast, statutory revenue decreased by -17% m/m to NGN418bn..

In addition to value-added tax and statutory revenue, the headline amount includes NGN6bn in exchange gain and NGN100bn in non-oil revenue.

The federal government's (FG) share of disbursements totalled NGN294bn, around NGN31bn (+12%) higher than the previous month’s receipts.

It comprised of NGN207bn in statutory revenue, NGN32bn in VAT, NGN53bn in augmentation from non-oil revenue, and NGN3bn in exchange gains

Disbursements to the 36 states of the federation and local government councils increased by NGN23bn and NGN17bn respectively, from the previous month to NGN240bn and NGN177bn.

However, the 13% derivation allocation to the oil-producing states declined by -57% m/m to NGN26bn.

The NGN418bn in statutory revenue for the month represents the smallest allocation to the three tiers of government since May 2022.

We understand that the decline in statutory revenue was primarily due to decreases in petroleum profit tax receipts and low collections of oil and gas royalties.

There was a substantial improvement in non-oil revenue due to marked increases in companies-income tax (CIT), VAT and excise duties.

According to FAAC, the total deductions from October’s revenue amounted to NGN222bn which comprises the cost of collections, transfers, savings, and refunds.