Local Government Councils across the country have been allocated a total of ₦361.754 billion from the December 2024 Federation Account Revenue.
This allocation was announced during the January 2025 Federation Account Allocation Committee (FAAC) meeting held in Abuja. The Local Government Councils are going to be expected to use the funds for their respective communities.
The total distributable revenue of ₦1.424 trillion comprised ₦386.124 billion from statutory revenue, ₦604.872 billion from Value Added Tax (VAT), ₦31.211 billion from the Electronic Money Transfer Levy (EMTL), and ₦402.714 billion from Exchange Difference revenue. Of this, Local Government Councils received their share across the different revenue streams.
The Federal Government received a total allocation of ₦451.193 billion, while the State Governments received ₦498.498 billion. Local Government Councils were allocated ₦361.754 billion. Additionally, ₦113.477 billion, representing 13% derivation revenue from mineral resources, was distributed to the benefiting states.
From the statutory revenue of ₦386.124 billion, Local Governments were allocated ₦65.574 billion. In addition, ₦211.705 billion was allocated to them from the ₦604.872 billion generated through VAT. The councils also received ₦10.924 billion from the ₦31.211 billion collected via the EMTL and ₦73.551 billion from the ₦402.714 billion Exchange Difference revenue.
The communiqué from FAAC indicated that the December 2024 gross revenue totaled ₦2.310 trillion, with deductions for cost of collection and other transfers amounting to ₦885.955 billion. This left a distributable balance of ₦1.424 trillion, of which Local Governments received their rightful share.
The allocation comes at a critical time as Local Government Councils face growing responsibilities in providing grassroots development and essential services. With this disbursement, councils are expected to address pressing local infrastructure needs and improve service delivery to their communities.
FAAC also highlighted increases in Value Added Tax (VAT) and Electronic Money Transfer Levy (EMTL) collections for December, which contributed significantly to the revenue distributed to all tiers of government. However, revenues from Oil and Gas Royalty, Petroleum Profit Tax (PPT), and Companies Income Tax (CIT) saw notable declines, reflecting the volatility of resource-based revenues.
This allocation underscores the continued commitment to equitable revenue sharing among Federal, State, and Local Governments, ensuring resources reach all levels to drive development and meet citizens’ needs.
Read Also: Nigeria’s 774 LGAs Set to Open Accounts with CBN to Facilitate Direct Transfer of Allocations
Agency Report
PIJAlance Magazine, is an independent public-centric journalism arm of PIJA Foundation that stands to tell stories connecting the masses to community justice and development. We always rebel against social injustice. Got a story you'll like us to publish, tip us in contact us.