President Bola Ahmed Tinubu’s administration has projected N24.17 trillion in revenue into the Federation Account for the 2024 fiscal year, according to the Saturday Tribune’s findings.
The accruing revenue into the Federation Account is shared by the three tiers of government, namely, the federal, state, and local governments, through the Federal Allocation Account Committee (FAAC).
As encapsulated in the 2024–2026 Medium-Term Fiscal Framework (MTFF) and Fiscal Strategy Paper (FSP) transmitted to the National Assembly, the projected fiscal outcomes in the medium term show “improved revenue inflows into the federation account, attributable to the removal of petrol subsidies, exchange rate liberalisation, and increased collection of non-oil taxes.
“The net amount accruable to the Federation Account is projected at N24.17 trillion. This is 104% higher than the 2023 projection. N20.34 trillion is projected to flow into the Main Pool, while N3.66 trillion and N174.24 billion are projected to accrue to the VAT Pool and EMTL, respectively, in 2024.
“Total oil revenues will be N13.49 trillion, or about 56% of total Federation Account receipts and 66% of Main Pool receipts.
“Other components of the Federation Account revenues include corporate tax of N3.04 trillion, customs revenue of N2.65 trillion, special levies of N511.88 billion, NLNG dividend of N630.21 billion, and revenues from solid minerals of N9.31 billion.”
In the 2024 fiscal year, the share of the Federal Government from the Main Federation Account Pool is estimated at N10.71 trillion, while the States and Local Governments are projected to get N5.43 trillion and N4.19 trillion, respectively.
The revenue shares from the VAT Pool and EMTL are projected to be N549.46 billion and N26.14 billion, respectively.
For the federal government, N1.83 trillion and N87.12 billion are for the states, and N1.28 trillion and N60.98 billion are for the local governments, respectively.
A further breakdown of the Federal Government’s share of the revenue share for the 2024 fiscal year is “projected at N16.74 trillion (N5.70 trillion, or 52% more than the 2023 budget).
“Of the aggregate revenue available to fund the 2024 budget, N6.80 billion, or 41%, is projected to come from oil-related sources.
“The balance of N9.95 trillion is to be earned from non-oil sources. The FGN share of non-oil tax is projected at N3.52 trillion, compared to N2.43 trillion in 2023, while its share of mineral and mining revenues is N4.56 billion in 2024, up from N3.64 billion in 2023.
“The projection for independent revenue has been moderated to N1.91 trillion, down from N3.17 trillion, while the projection for grant- and donor-funded projects is N604.12 billion.
“More dividends from the Bank of Industry, Development Bank of Nigeria, Galaxy Backbone, and Bank of Agriculture have been recognised in the 2024 projections, bringing the projection to N316.68 billion compared to N81.79 billion in 2023. The projected sum of other revenues, including FGN’s share of Oil! Price Royalty, Education Tax, Electronic Money Transfer Levy, and Drawdowns from Special Accounts, is N732.72 billion.”
Meanwhile, the Federal Government’s aggregate expenditure for 2024 is estimated at N25.36 trillion, including the provision of N2.73 trillion for GOEs’ expenditures, grants, and donor-funded projects amounting to N604.12 billion.
This is higher than the corresponding 2023 FGN aggregate expenditure estimate of N21.83 trillion by 16.2% (or about N3.53 trillion).
The 2024 expenditure estimate includes statutory transfers of N1.28 trillion and non-debt recurrent expenditures of N9.71 trillion (including N200 billion for the recurrent component of the Special Intervention Programme).
The provisions of N8.25 trillion and N243 billion have been made for the Debt Service and Sinking Fund to retire maturing bonds issued to local contractors and creditors, respectively, in the 2024 budgeted expenditure.
A total of N6.78 trillion (inclusive of N1.02 trillion for GOEs) is provided for personnel and pension costs, an increase of N904.49 billion, or 15%, over the 2023 provision. This is 40% of the projected aggregate revenues for 2024.
The provision for statutory transfer includes N112.84 billion (representing 1% of the consolidated revenue fund) earmarked for the Basic Health Care Provision Fund (BHCPF) and N116.06 billion for the North-East Development Commission (NEDC). In addition, N129.53 billion has been set aside in the service-wide votes for GAVI/Routine Immunisation.
The aggregate amount available for capital expenditures in the 2024 budget is N6.77 trillion. This represents 27% of total expenditure and is only 5% more than the 2023 provision of N6.45 trillion.
The 2024 provision comprises N2.31 trillion for MDAs, N855.70 billion for capital supplementation, N895.21 billion for the capital component of statutory transfers, N7 billion for the Family Home Fund, N820.91 billion for the capital budget of GOEs, N604.12 billion for donor/grant-funded expenditures, and N888.53 billion funded by project-tied multilateral/bilateral loans.
Other provisions, including TETFUND capital and transfers to the National Social Investment Authority (NSIA), amount to N388.82 billion.
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