The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) disclosed that a total of 7,314,129,314,386.08 Naira accrued into the Federation Account from July to December 2023. This revelation came in the monthly report to the Federation Account Allocation Committee (FAAC) by the Central Bank of Nigeria (CBN) under the title “CBN Federation Account Component Statement.”

According to a press release signed by RMAFC Chairman, Mr. Mohammed Bello Shehu, distributed in Abuja, the Commission reported on the total revenue that flowed into the Federation Account during the period.

Out of the total gross revenue inflows, 1,692,591,243,111.06 Naira was transferred to the Exchange Gain Differential Account, leaving a balance of 5,475,345,228,675.47 Naira for distribution. From this balance, 3,267,312,106,993.25 Naira was deducted as approved statutory deductions by the OAGF, leaving a net balance of 2,208,033,121,682.22 Naira for distribution to the 3-tiers of government.

Mr. Shehu further explained that out of the 3.267 trillion Naira statutory deduction, 2.251 trillion Naira was transferred to the Non-Oil Excess Account as savings, leaving a net statutory deduction of 1.016 trillion Naira for distribution among the 3-tiers of government, augmented from some reserve accounts maintained by the Federal Ministry of Finance/OAGF.

During the period, a net sum of 4,000,616,207,152.95 Naira was shared with the three tiers of government, an amount higher than the total sum of 3,069,594,889,669.74 Naira shared in the preceding six months.

In terms of percentages, the statutory deduction in the second half of the year constituted 44.12% of the total gross inflow into the Federation Account, higher than the first half deductions of 42.31%.

On remittances by Revenue Generating Agencies (RGAs), Mr. Shehu disclosed significant contributions from agencies such as the Nigerian National Petroleum Company Limited (NNPCL), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Federal Inland Revenue Service (FIRS), and Nigeria Customs Service (NCS).

Mr. Shehu advocated tying the cost of collection received by RGAs to their performance to increase revenue generation and remittances. He highlighted the need for pragmatic measures to enhance revenue and block revenue leakages, aligning with the Renewed Hope Agenda of President Bola Ahmed Tinubu.

The RMAFC Chairman emphasized the importance of collaboration and government support in achieving sustainable economic growth and development.

This report underscores the crucial role of revenue mobilization and allocation in Nigeria’s fiscal management and economic stability.