- RMAFC condemns states’ disregard for pay guidelines
Nigeria’s gross statutory revenue rose by N622.125 billion to N1.848 trillion in January 2025 from the N1.226 trillion received in December 2024.
This was announced by the Federation Accounts Allocation Committee at the end of its February 2025 meeting in Abuja on Thursday.
FAAC also announced that a total sum of N1.703 trillion, being January 2025 Federation Account Revenue, was shared with the Federal Government, States, and Local Government Councils.
It said the N1.703 trillion total distributable revenue comprised distributable statutory revenue of N749.727 billion, distributable Value Added Tax (VAT) revenue of N718.781 billion, Electronic Money Transfer Levy (EMTL) revenue of N20.548 billion, and an augmentation of N214 billion.
A communiqué issued by the FAAC stated that the total gross revenue of N2.641 trillion was available in January 2025.
The total deduction for the cost of collection was N107.786 billion, while total transfers, interventions, refunds, and savings amounted to N830.663 billion.
According to the communiqué, gross revenue of N771.886 billion was available from the Value Added Tax (VAT) in January 2025.
This was higher than the N649.561 billion available in December 2024 by N122.325 billion.
The communiqué further stated that from the N1.703 trillion total distributable revenue, the Federal Government received N552.591 billion; State Governments received N590.614 billion, while Local Government Councils received N434.567 billion. A total sum of N125.284 billion (13 percent of mineral revenue) was shared with the benefiting states as derivation revenue.
On the N749.727 billion distributable statutory revenue, the communiqué stated that the Federal Government received N343.612 billion, the State Governments received N174.285 billion, the Local Government Councils received N134.366 billion, while the sum of N97.464 billion (13 percent of mineral revenue) was shared with the benefiting states as derivation revenue.
From the N718.781 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N107.817 billion, the State Governments received N359.391 billion, and the Local Government Councils received N251.573 billion.
A total sum of N3.082 billion was received by the Federal Government from the N20.548 billion Electronic Money Transfer Levy (EMTL).
The State Governments received N7.192 billion, and the Local Government Councils received N10.274 billion.
From the N214 billion augmentation, the Federal Government received N98.080 billion, the State Governments received N49.747 billion, the Local Government Councils received N38.353 billion, and a total sum of N27.820 billion (13 percent of mineral revenue) was shared with the benefiting states as derivation revenue.
FAAC also reported that in January 2025, Value Added Tax (VAT), Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty, and CET Levies increased significantly, while Electronic Money Transfer Levy (EMTL) and Oil and Gas Royalty decreased considerably.
The FAAC meeting was earlier scheduled for last week but was postponed due to some disagreement over the alleged failure of the Nigerian National Petroleum Company Limited to remit revenues amounting to an estimated N1.7 trillion from November 2024, when the petrol subsidy was fully removed.
RMAFC condemns states’ disregard for pay guidelines
Meanwhile, the Revenue Mobilisation Allocation and Fiscal Commission has criticised several states for their failure to properly implement the commission’s remuneration guidelines for political, public, and judicial officeholders.
The Chairman of the RMAFC, raised these concerns during a workshop held in Abuja on Thursday, aimed at addressing the challenges faced by states in implementing the remuneration package.
In his keynote address, Shehu pointed out that although the Federal Government and the Federal Capital Territory had fully enacted the RMAFC’s remuneration recommendations, many states and local government councils had either failed to pass the required state laws or had not implemented the packages as recommended, in violation of the 1999 Constitution.
He explained that several states had merely adopted the RMAFC’s recommendations without enacting appropriate legislation, which he described as a breach of constitutional provisions.
The RMAFC chairman further highlighted that this lack of compliance had resulted in ongoing complaints and investigations into state-level corruption and mismanagement, often leading to inquiries by agencies like the Independent Corrupt Practices and Other Related Offences Commission and the Economic and Financial Crimes Commission.
He said, “The Commission had observed lapses in the implementation of the Remuneration Reports at the State and Local Government levels as contained in the report of a Pilot Monitoring Exercise it carried out in 2019.
“For instance, whereas the Remuneration Act was enacted at the Federal Level for the purpose of Political, Public, and Judicial office holders at that level and the Federal Capital Territory, most States across the country adopted the Commission’s recommendation as contained in its Reports without the required legislative action or enactment of State Laws. This action contravened the Constitutional provision concerning the remuneration of the Executive at the State and Local Government levels.
“Equally, the Commission has continuously received complaints, requests for clarifications in implementing the recommendations contained in its Reports and/or investigations of violation of the same recommendations by ICPC or EFCC against officials of the States and Local Governments.
“Accordingly, to address these observations, this one-day workshop is organized.”
Shehu urged state executives and legislatures to strictly follow the constitutional provisions in implementing the RMAFC remuneration package.
The workshop aimed to educate these key stakeholders on their responsibilities, as well as to resolve any grey areas in the implementation process.
It also sought to offer solutions to the challenges that various states had encountered.
He emphasised the principles of equity, fairness, and reasonableness, stressing that the remuneration for officeholders should reflect the risks and responsibilities attached to their positions while also ensuring that the packages are affordable and within the capacity of the government’s budget.
The RMAFC chairman also stressed the importance of maintaining uniformity and consistency in how these packages are applied across the various levels of government.
Shehu also took the opportunity to address the issue of local government councillors, noting that the remuneration of local government legislative councils falls under the RMAFC’s mandate and should not require state legislative approval.
He expressed concerns over several states’ disregard for the RMAFC’s authority in this matter, especially concerning the salaries of local government councillors, which he described as a long-standing issue.
The RMAFC chairman called on stakeholders at all levels of government, particularly in the state and local governments, to respect the commission’s guidelines.
He argued that adherence to the remuneration package would contribute significantly to good governance and help reduce the cost of governance across Nigeria.
Shehu thanked participants for their involvement in the workshop and expressed hope that the knowledge gained would support the proper implementation of the RMAFC’s recommendations in the states and local governments.
He urged the state legislatures to pass the necessary legislation to ensure full compliance with the remuneration guidelines and alignment with the Constitution.
The Chairman of the Remuneration and Monetisation Committee, Kabeer Usman, welcomed stakeholders from various levels of government, acknowledging the commission’s core role in determining remuneration packages for political, public, and judicial officeholders.
He expressed optimism that the resource person would address challenges in implementing the RMAFC’s recommendations and urged participants to engage actively in the workshop to ensure successful implementation at the state and local government levels.