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FAAC: FG, States, LGCs Share N1.35trn July Revenue

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Federal Government, States and Local Government Councils – have shared a total sum of N1,358.075 billion as of July 2024 Federation Accounts Revenue.

Of the N1,358.075 billion total distributable revenue, the Federal Government received a total sum of N431.079 billion, and the State Government received a total sum of N473.477 billion.

The Local Government Councils received a total sum of N343.703 billion, and a total sum of N109.816 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

The N1,358.075 billion total distributable revenue comprised distributable statutory revenue of N161.593 billion, distributable Value Added Tax (VAT) revenue of N582.307 billion and Electronic Money Transfer Levy (EMTL) revenue of N18.818 billion.

Also included in the total distributable revenue was Exchange Difference revenue of N581.710 billion and Solid Mineral revenue of N13.647 billion.

The revenue distribution was announced at the August 2024 meeting of the Federation Accounts Allocation Committee (FAAC) in Abuja on Friday, August 16, 2024.

A communique issued by FAAC indicated that total revenue of N2,613.791 billion was available in July 2024. The total deduction for the cost of collection was N99.756 billion, while total transfers, interventions and refunds were N1,155.960 billion.

According to the communique, gross statutory revenue of N1,387.150 billion was received for July 2024. This was lower than the sum of N1,432.667 billion received in June 2024 by N45.517 billion.

Gross revenue of N625.329 billion was available from VAT in July 2024. This was higher than the N562.685 billion available in June 2024 by N62.644 billion.

On the N161.593 billion distributable statutory revenue, the communiqué stated that the Federal Government received N58.545 billion and the State Governments received N29.695 billion.

The Local Government Councils received N22.894 billion, and the sum of N50.459 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.

From the N582.307 billion distributable VAT revenue, the Federal Government received N87.346 billion, the State Governments received N291.154 billion and the Local Government Councils received N203.807 billion

In a statement issued by Bawa Mokwa, the Director of Press and Public Relations in the Office of the Accountant General of the Federation, a total sum of N2.823 billion was received by the Federal Government from the N18.818 billion Electronic Money Transfer Levy (EMTL). The State Governments received N9.409 billion and the Local Government Councils received N6.586 billion.

On the N581.710 billion Exchange Difference revenue, the communique stated that the Federal Government received N276.110 billion and the State Governments received N140.047 billion.

The Local Government Councils received N107.970 billion, while the sum of N57.583 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

From the N13.647 billion Solid Mineral revenue, the Federal Government received N6.255 billion and the State Governments received N3.172 billion.

The Local Government Councils received N2.446 billion, while the sum of N1.774 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

As presented in the communiqué, in July 2024, Oil and Gas Royalty, Petroleum Profit Tax (PPT), VAT, Import Duty, EMTL and CET Levies increased significantly.

Furthermore, Companies Income Tax (CIT) recorded a decrease while Excise Duties increased only marginally.

The balance in the ECA was $473,754.57

 

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Business & Economy

Tinubu To Present 2027 Budget Before Year-End As FEC Approves Five-Year Development Plan

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President Bola Ahmed Tinubu
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President Bola Tinubu is expected to present the 2027 Appropriation Bill to the National Assembly before the end of 2026, as the Federal Executive Council (FEC) approved the National Development Plan 2026–2030 and new policy measures aimed at strengthening food security and tackling child stunting.

The Minister of State for Budget and Economic Planning, Doris Uzoka-Anite, disclosed this on Wednesday while briefing State House correspondents on the outcomes of the FEC meeting chaired by President Tinubu at the Presidential Villa, Abuja.

Uzoka-Anite also announced the council’s approval of the Revised National Policy on Food and Nutrition 2026, which seeks to establish sustainable financing mechanisms and strengthen collaboration among ministries responsible for agriculture, livestock, health and education, as well as development partners.

The announcements followed the conclusion of the 32nd Nigerian Economic Summit, held in Abuja from October 26 to 28, which focused on key issues affecting the country’s economic development.

Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has clarified that the $21.7 billion borrowing proposal transmitted by President Tinubu to the National Assembly is intended to finance investments in productive assets and infrastructure rather than recurrent expenditure.

Oyedele explained that the proposal represents a multi-year investment programme spanning approximately five years, rather than an immediate drawdown of the entire amount.

According to him, $10.6 billion is earmarked for critical transportation infrastructure, including the Sokoto–Badagry Highway, Lagos–Calabar Coastal Highway and Kano–Kaduna Metro Rail.

He further disclosed that more than $7.9 billion would be sourced from multilateral and bilateral development partners, including $5 billion from the World Bank, at an average interest rate of approximately 2.1 per cent.

The proposed financing package also includes $3.3 billion for state government projects and $1.45 billion for projects in the Federal Capital Territory.

The planned 2027 budget presentation and the approval of the five-year development plan underscore the Federal Government’s efforts to align fiscal planning, infrastructure investment and social development priorities with its broader economic agenda.

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Tinubu Rules Out Fuel Subsidy Return, Says Nigeria Cannot Go Back to ‘Egypt’

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President Bola Ahmed Tinubu
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President Bola Tinubu has ruled out any return to petrol subsidy, insisting that the removal of the policy was necessary to prevent Nigeria’s economy from sliding into bankruptcy.

The President reiterated his position on Monday during a meeting with members of the City Boy Movement, a youth-driven political and advocacy group, where he defended the economic reforms introduced by his administration.

Tinubu said the government could no longer sustain the financial burden of subsidising petrol, arguing that the country lacked the resources required to continue funding the scheme.

“I came, and I removed the subsidy on my first day. Nigeria would have gone bankrupt; there was nothing left to pay for subsidies,” he said.

Using a biblical and Quranic analogy to underscore his position, the President declared that reversing the policy would amount to returning to an unsustainable economic system.

“When Moses (Musa) left Egypt, the Red Sea parted and gave way. You cannot ask Moses to go back to Egypt. With your energy and support, we will never go back to Egypt,” he stated.

The removal of petrol subsidy, announced during Tinubu’s inauguration on May 29, 2023, marked a major shift in Nigeria’s fiscal policy. The decision significantly increased petrol prices and contributed to mounting pressure on household incomes, transportation costs and businesses.

Petrol prices, which were below ₦200 per litre before the policy change, have since risen substantially, with prices reported at between ₦1,350 and ₦1,405 per litre across major filling stations.

The resulting increase in energy and transportation costs has continued to fuel public concerns over inflation, declining purchasing power and the overall cost of living.

However, the Federal Government has maintained that subsidy removal is critical to reducing fiscal pressure, improving public revenue and creating room for investment in infrastructure and other priority sectors.

Tinubu acknowledged the political contest surrounding the policy, noting that his opponents had promised to restore fuel subsidy. He nevertheless maintained that his administration would not reverse the reform.

Beyond defending the policy, the President urged members of the City Boy Movement to mobilise support for his administration by communicating its achievements and future plans to young Nigerians across campuses, markets and rural communities.

He also encouraged eligible young people to obtain their Permanent Voter Cards (PVCs) and participate in the electoral process.

The debate over fuel subsidy remains a central issue in Nigeria’s economic policy, with the government defending the reform on fiscal sustainability grounds while households and businesses continue to grapple with the effects of higher fuel prices.

 

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FG Rules Out Electricity Tariff Hike, Targets 24-Hour Power Supply

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The Federal Government has ruled out any plan to increase electricity tariffs, saying its priority is to improve power supply and ensure reliable electricity across the country.

The Minister of Power, Joseph Tegbe, gave the assurance in Ibadan, Oyo State, on Thursday, amid concerns and speculation about a possible increase in electricity tariffs.

Tegbe spoke during the groundbreaking ceremony for five interconnected mini-grid projects with a combined generation capacity of 17.7 megawatts and a 17.74-megawatt-hour Battery Energy Storage System (BESS).

“I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power,” the minister said.

He urged Nigerians to disregard reports suggesting an impending tariff hike, stressing that the government was focused on improving electricity generation, transmission and distribution.

The five mini-grid projects are located in Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega. They are expected to provide electricity to communities across Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas of Oyo State.

According to the minister, the projects are designed to expand electricity access, reduce dependence on petrol and diesel-powered generators, and create a more favourable environment for businesses, investment and job creation.

Tegbe said the Federal Government was also implementing a broader energy strategy aimed at improving electricity supply through designated energy corridors, including the Lagos-Ogun, Abuja-Kaduna-Kano and Benin-Enugu-Port Harcourt corridors.

He added that efforts were underway to strengthen the national grid and upgrade generation and transmission infrastructure across the country’s eastern, western and central corridors.

The minister described the mini-grid initiative as part of President Bola Tinubu’s Renewed Hope Agenda, noting that similar electricity interventions had been implemented in communities across several states with support from the Rural Electrification Agency (REA).

He commended Tinubu for his leadership and acknowledged the contributions of the REA, project developer Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company.

Tegbe also recognised the Oyo State Government, traditional rulers and other stakeholders for their roles in facilitating the projects.

The initiative is expected to improve electricity reliability in the beneficiary communities, support local economic activities and reduce energy costs for households and businesses.

 

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