The underlying lingering issues which led to the impasse in the Federation Account Allocation Committee (FAAC) last week have been resolved, with the Committee approving for sharing yesterday N1.703 trillion between the Federal Government, states and local government councils, being federation revenue for January shared this month.
The sharing ends days of long wait for February salary payment by civil servants on the government’s payroll.
The Office of the Accountant General of the Federation (OAGF) informed New Telegraph that the Treasury House began salary upload (February salary) yesterday afternoon.
Director of Information in OAGF, Mallam Bawa Mokwa, broke the news to New Telegraph on phone conversation with this medium on FAAC updates.
“I can confirm to you that some of the underlying issues which led to FAAC postponement last week have been resolved. Salary has been uploaded, workers can reach out to their respective banks between today and tomorrow,” he said.
The FAAC session was cancelled midway last week following fundamental issues.
Firstly, was the unresolved logjam with respect to the implementation of the Supreme Court ruling ordering direct disbursement of the FAAC allocation due to the local government councils to the councils.
The second was the failure of the Nigerian National Petroleum Company Limited (NNPC Ltd) to remit N13.763 trillion in revenue to the federation purse.
The withheld sum, which NNPC Ltd is allegedly accused of, is a cumulation of FAAC revenue the oil firm is said to have defaulted in remittance over the years.
With respect to local government councils’ accounts, Mokwa said the process was still ongoing. FAAC, in a statement issued last night by Bawa Mokwa, said the sum of N 1.703 trillion shared was January 2025 revenue. The revenue was shared at the February FAAC meeting held in Abuja.
The N1.703 trillion total distributable revenue, comprised distributable statutory revenue of N749.727 billion, distributable Value Added Tax (VAT) revenue of N718.781 billion, Electronic Money Transfer Levy (EMTL) revenue of N20.548 billion and Augmentation of N214 billion.
According to details, the total gross revenue of N2.641 trillion was available in the month of January 2025. Total deduction for cost of collection was N107.786 billion while total transfers, interventions, refunds and savings was N830.663 billion. According to the communiqué, gross statutory revenue of N1.848 trillion was received for the month of January 2025.
This was higher than the sum of N1.226 trillion received in the month of December 2024 by N622.125 billion. Gross revenue of N771.886 billion was available from the Value Added Tax (VAT) in January 2025. This was higher than the N649.561 billion available in the month of December 2024 by N122.325 billion.
The FAAC statement explained that from the N1.703 trillion total distributable revenue, the Federal Government received a total sum of N552.591 billion and the state governments received N590.614 billion.
The local government councils received N434.567 billion and a total sum of N125.284 billion (13% of mineral revenue) was shared to the benefiting states as derivation revenue.
On the N749.727 billion distributable statutory revenue, the communiqué stated that the Federal Government received N343.612 billion and state governments received N174.285 billion.
In January 2025, Value Added Tax (VAT), Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty and CET Levies increased significantly while Electronic Money Transfer Levy (EMTL) and Oil and Gas Royalty decreased considerably.
