N1.298 Trillion Revenue Shared: In September 2024, N1.298 trillion in revenue has been distributed among the Federal Government (FG), State Governments, and Local Government Councils (LGs). This significant revenue sharing was revealed during the recent meeting of the Federation Accounts Allocation Committee (FAAC) held in Abuja.

According to the announcement by the Office of the Accountant General, led by Bawa Mokwa, the total distributable revenue included various components. The breakdown revealed distributable statutory revenue of N124.716 billion, Value Added Tax (VAT) revenue of N543.518 billion, Electronic Money Transfer Levy (EMTL) revenue amounting to N18.445 billion, Exchange Difference revenue of N462.191 billion, and an Augmentation of N150.000 billion.

A communiqué issued by FAAC detailed that the total revenue available in September 2024 reached N2.258 trillion. After accounting for deductions and transfers, the final distributable revenue stood at N1.298 trillion. The report noted a total deduction of N80.993 billion for collection costs and N878.946 billion in transfers and refunds.

In a comparison of revenues, gross statutory revenue for September 2024 totaled N1.043 trillion. This figure marks a decline from the N1.221 trillion received in August 2024, a decrease of N177.426 billion.

Additionally, gross revenue from VAT reached N583.675 billion in September, which is an increase of N10.334 billion compared to August’s revenue of N573.341 billion.

The distribution of the N1.298 trillion total revenue indicates that the Federal Government received N424.867 billion, while State Governments obtained N453.724 billion. Local Government Councils were allocated N329.864 billion. Additionally, N90.415 billion (13% of mineral revenue) was shared among the States as derivation revenue.

Focusing on the N124.716 billion distributable statutory revenue, the Federal Government’s share was N43.037 billion, with State Governments receiving N21.829 billion and Local Government Councils getting N16.829 billion. The benefit of N43.021 billion (13% of mineral revenue) was also allocated to benefiting States as derivation revenue.

From the N543.518 billion VAT revenue, the Federal Government received N81.528 billion, while State Governments received N271.759 billion, and Local Government Councils got N190.231 billion.

Furthermore, from the N18.445 billion Electronic Money Transfer Levy (EMTL), the Federal Government’s share amounted to N2.767 billion, with State Governments receiving N9.222 billion and Local Government Councils N6.456 billion.

The report highlighted that from the N462.191 billion Exchange Difference revenue, the Federal Government received N218.515 billion, State Governments got N110.834 billion, and Local Government Councils received N85.448 billion. Additionally, N47.394 billion (13% of mineral revenue) was shared with the States as derivation revenue.

Lastly, from the N150.000 billion Augmentation, the Federal Government was allocated N79.020 billion, State Governments received N40.080 billion, and Local Government Councils got N30.900 billion.

N1.298 Trillion Revenue Shared In summary, the revenue distribution process reflects various changes in economic activities, with an increase in Oil and Gas royalties, Excise Duty, and EMTL. However, there were significant decreases in Petroleum Profit Tax (PPT), Companies Income Tax (CIT), and others.

By sharing a total of N1.298 trillion, the FG, States, and LGs are strategically positioned to manage their finances effectively. This transparent distribution fosters accountability and supports various developmental initiatives across the nation.

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Last Updated on October 18, 2024 by news

Tinubu’s Economic Reforms: The World Bank has stated that President Bola Tinubu’s economic reforms are essential to prevent Nigeria from falling into a deeper crisis. This statement comes amid rising inflation and increasing poverty levels in the country. Dr. Ndiame Diop, the World Bank’s Country Director for Nigeria, made these comments during an appearance on Channels Television’s Morning Brief on Friday. He emphasized that the current administration’s reforms are corrective measures designed to address these pressing economic issues.

In a recently released report titled ‘The Nigeria Development Update,’ the World Bank highlights a concerning statistic: over 129 million Nigerians are currently trapped in poverty. The report was published on Thursday in Abuja and indicates that rising inflation has forced millions into hunger. The data reveals that the percentage of Nigerians living below the national poverty line has jumped from 40.1% in 2018 to 56% in 2024. This dramatic increase underscores the urgent need for effective economic reforms.

According to the World Bank report, “With growth proving too slow to outpace inflation, poverty has risen sharply. Since 2018, the share of Nigerians living below the national poverty line is estimated to have risen from 40.1% to 56.0%.” This alarming trend is compounded by Nigeria’s sluggish growth record. Real GDP per capita has not returned to pre-recession levels seen before the oil price drop in 2016.

The COVID-19 pandemic further exacerbated the economic decline, significantly reducing economic activity. As inflation continues to soar, large increases in the prices of nearly all goods have severely diminished purchasing power for Nigerians.

The World Bank report emphasizes the critical state of Nigeria’s economy, calling for urgent reforms to prevent further deterioration. Diop’s remarks underscore the potential impact of Tinubu’s reforms on stabilizing the economy and improving living conditions for the millions affected by poverty and inflation.

In conclusion, the World Bank remains optimistic that with appropriate reforms, Nigeria can avert a more significant economic crisis. The government’s focus on corrective measures is crucial to ensuring that Nigerians do not continue to suffer from the rising tide of inflation and poverty.

Source: ChannelsTv

Last Updated on October 18, 2024 by news

Inflation Crisis: Inflation has become a critical issue in Nigeria, pushing over 129 million Nigerians into poverty, according to the World Bank. The latest report reveals that headline inflation has surged to 45.92% as of September 2024, a significant jump since Bola Ahmed Tinubu took office in May 2023.

Rising Cost of Living

The cost of everyday items has skyrocketed in Nigeria, leading to severe economic challenges for many citizens. The World Bank’s findings indicate that poverty has risen sharply, affecting 104 million people in 2023 compared to 79 million just five years earlier. This alarming trend highlights the impact of inflation on the daily lives of millions.

A man selling clothes at Balogun Market in Lagos faces dwindling customer traffic, especially during the holiday season, due to the cost of living crisis. Increased prices for food and essential goods have become the norm, making it increasingly difficult for families to make ends meet.

Shocking Poverty Statistics

The World Bank’s Nigeria Development Update report shows that the percentage of Nigerians living below the poverty line has jumped from 40.1% in 2018 to 56% in 2024. This means that approximately 129 million Nigerians are now trapped in poverty. This staggering figure underscores the challenges facing Nigeria’s economy and the need for effective policy reforms.

The report highlights that the economic downturn is exacerbated by several factors, including the COVID-19 pandemic and an ongoing lack of robust economic growth. With inflation rising, purchasing power continues to diminish, pushing more Nigerians into a state of economic hardship.

External Factors Contributing to Inflation

Several external shocks have contributed to this crisis. These include natural disasters, rising food prices, and poor economic management. The devaluation of the Naira against other currencies has made imports more expensive, further driving up prices. As a result, many families are forced to make sacrifices, such as reducing their food intake or forgoing essential goods altogether.

The World Bank has noted a significant increase in urban poverty as well. Urban poverty rates have climbed to 31.3%, up from 18% in 2018, indicating that no region is immune to the economic downturn. The report stresses the importance of creating sustainable jobs to help alleviate this growing issue.

Call for Sustainable Reforms

World Bank officials emphasize that addressing this crisis requires sustained policy reforms. They warn that reversing recent economic policies would be detrimental to Nigeria’s recovery efforts. The ongoing cash transfer programs aim to support the most vulnerable households during this crisis.

Despite the challenges, there is a call for optimism. With Nigeria’s young and growing population, strategic job creation could harness the country’s potential and promote economic stability.

Conclusion

The current inflation crisis in Nigeria has plunged over 129 million Nigerians into poverty, highlighting the urgent need for effective economic reforms. As the country grapples with rising prices and diminishing purchasing power, the focus must shift towards sustainable growth strategies that prioritize job creation and economic stability.

In conclusion, inflation remains a pressing issue affecting millions of Nigerians. The data presented in the World Bank report serves as a stark reminder of the challenges that lie ahead and the need for immediate action to combat poverty and improve living conditions for all Nigerians.

Source: ChannelsTv

Last Updated on October 18, 2024 by news