Nigeria is aiming to generate N24.17 trillion in revenue for the 2024 fiscal year, according to President Bola Ahmed Tinubu’s administration. This revenue will be shared among the federal, state, and local governments through the Federal Allocation Account Committee (FAAC). The projected increase in revenue is attributed to the removal of petrol subsidies, exchange rate liberalisation, and increased collection of non-oil taxes. The net amount expected to be accrued to the Federation Account is N24.17 trillion, which is a significant increase compared to the previous year. The Main Pool is projected to receive N20.34 trillion, while the VAT Pool and EMTL are expected to accrue N3.66 trillion and N174.24 billion, respectively.
The majority of the revenue, about 56%, will come from oil revenues, totaling N13.49 trillion. Other sources of revenue for the Federation Account include corporate tax, customs revenue, special levies, NLNG dividend, and revenues from solid minerals.
In terms of distribution, the Federal Government is estimated to receive N10.71 trillion from the Main Federation Account Pool, while the States and Local Governments are projected to get N5.43 trillion and N4.19 trillion, respectively. The VAT Pool and EMTL are expected to contribute N549.46 billion and N26.14 billion to the revenue shares.
The Federal Government’s share of the revenue for the 2024 fiscal year is projected to be N16.74 trillion, which is a significant increase compared to the previous year. The revenue is expected to come from both oil-related and non-oil sources, with the FGN’s share of non-oil tax projected at N3.52 trillion. The projection for independent revenue has been moderated to N1.91 trillion, while the projection for grant- and donor-funded projects is N604.12 billion.
The Federal Government’s aggregate expenditure for 2024 is estimated at N25.36 trillion, including provisions for GOEs’ expenditures, grants, and donor-funded projects. This is an increase compared to the previous year’s expenditure estimate. The expenditure estimate includes statutory transfers, non-debt recurrent expenditures, debt service, and sinking fund.
A significant portion of the expenditure, about 40%, is allocated to personnel and pension costs. The provision for statutory transfer includes funds for the Basic Health Care Provision Fund and the North-East Development Commission. The capital expenditure in the 2024 budget is N6.77 trillion, which represents 27% of the total expenditure.
In summary, Nigeria is expecting a significant increase in revenue for the 2024 fiscal year, which will be shared among the federal, state, and local governments. The increase in revenue is attributed to various factors, including the removal of petrol subsidies and increased collection of non-oil taxes. The projected expenditure for 2024 is also higher compared to the previous year, with a significant portion allocated to personnel and pension costs and capital expenditure.