In the third quarter of 2024, Nigeria's federation account revenue increased to N6.86 trillion, according to a report from the Central Bank of Nigeria (CBN). This marks a 7.48 percent rise from the previous quarter, primarily driven by higher company taxes and value-added tax (VAT).
The report indicated that N5.56 trillion of the revenue stemmed from non-oil sources, while oil revenue contributed the remainder. The CBN stated, "Gross federation account earnings improved, occasioned by higher receipts from non-oil revenue. At N6.86tn, the provisional gross federation account receipt was 7.48 percent above the level in the preceding quarter but 23.71 percent short of the benchmark."
Non-oil revenue specifically reached N5.56 trillion, representing increases of 19.48 percent and 50.36 percent compared to the previous quarter and target, respectively. The report noted that the rise was largely due to improved collections from corporate tax and VAT.
Conversely, oil revenue fell by 24.72 percent to N1.30 trillion, attributed to issues with aging pipelines and equipment. Of the total N6.87 trillion collected, N3.92 trillion was distributed among various government levels: N1.27 trillion to the federal government, N1.36 trillion to state governments, and N0.99 trillion to local governments. Additionally, oil-producing states received N0.30 trillion through the 13 percent Derivation Fund.