Nigeria’s Federation Account Allocation Committee (FAAC) reported a record-breaking revenue inflow of N3.143 trillion for November 2024, marking the highest figure in recent years.
According to The Nation, the sharp rise in revenue was driven by increased oil and gas royalties and higher collections from the Common External Tariff (CET) levies.
FAAC attributed the boost to a rebound in global crude oil prices, heightened production levels, and strengthened anti-theft measures in the oil sector.
Efforts by the Nigerian National Petroleum Company Limited (NNPC) and other stakeholders have significantly reduced crude oil theft and enhanced revenue collection.
CET levies, applicable to imports within the Economic Community of West African States (ECOWAS), also witnessed growth due to improved customs enforcement and better trade compliance.
However, the FAAC communiqué noted a drop in several other revenue streams, including Excise Duty, Value Added Tax (VAT), Import Duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), and the Electronic Money Transfer Levy (EMTL).
An insider revealed that these declines reflect broader economic challenges such as inflation, weakened consumer spending, declining import volumes, and reduced corporate profitability.
“Declining VAT and Excise Duty revenues are signs of waning consumer demand due to inflationary pressures,” the source explained.
“Similarly, lower Import Duty reflects a slowdown in trade, likely caused by foreign exchange constraints and global economic uncertainties.”
While the record inflow highlights progress in oil and trade revenue, it also underscores the urgency of diversifying Nigeria’s revenue base.
FAAC has urged continued efforts to strengthen tax collection efficiency and enhance non-oil revenue streams.
Despite challenges, the November figures are a testament to the government’s ongoing fiscal reforms and its focus on stabilizing the nation’s economy.
SOURCE: Aisharimmi