Statutory revenue rises by N622.1b as FG, states, LGAs share N1.70tr

EU pledges to strengthen LG polls as DAI launches EU-funded study of SIECs

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 (FAAC) at the end of its February 2025 meeting in Abuja, yesterday.

Meanwhile, the European Union (EU) said it would continue to support the strengthening and improvement of local elections and local democracy in Nigeria.

This was as Development Alternatives Incorporated (DAI Nigeria) launched the EU-funded analytic study highlighting the challenges faced by SIECs in the discharge of their statutory mandate to conduct local elections in the country.

FAAC also announced that N1.703 trillion, being January 2025 Federation Account Revenue, was shared among the Federal Government, states and the local councils.

It said the N1.703 trillion comprised distributable statutory revenue of N749.727 billion, distributable Value Added Tax (VAT) of N718.781 billion, Electronic Money Transfer Levy (EMTL) of N20.548 billion and Augmentation of N214 billion.

A communiqué issued by FAAC stated that gross revenue of N2.641 trillion was available in January 2025. Total deduction for cost of collection was N107.786 billion while total transfers, interventions, refunds and savings was N830.663 billion.

According to the communiqué, gross revenue of N771.886 billion was available from 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, states received N590.614 billion, while local councils received N434.567 billion and N125.284 billion (13 per cent of mineral revenue) was shared to 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 and the states received N174.285 billion, local councils received N134.366 billion while N97.464 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

TEAM Leader, Governance, Peace and Migration, EU Delegation to Nigeria and ECOWAS, Ruben Aguilera, disclosed EU’s support for SIECs during the unveiling of a study entitled ‘The State of the State Independent Electoral Commissions in Nigeria’ by DAI in Abuja.

The study, funded by the EU, highlighted some challenges that State Independent Electoral Commissions (SIECs) face in conducting local elections, including partisan appointments, inadequate funding and lack of autonomy.

It also identified many opportunities for reform and improvement, especially in the context of the Supreme Court judgment regarding funding and democratic elections in local councils, which has led to several local elections being held since July 2024.

AT the launch of the EU-funded study, DAI noted free, fair and credible local council elections as the foundation of a functioning democracy at the grassroots level, as local council elections help to build strong, responsive and accountable institutions that effectively serve the country on the local level. It further identified six key reform areas to strengthen SIECs in the discharge of their constitutional responsibilities.

They include: creating a coalition for local election administration reforms, implementing legal and technical reforms, and promoting the institutional development of SIECs and Forum of State Independent Electoral Commission of Nigeria (FOSIECON), their umbrella body.

Others are: enhancing election observation by civil society, fostering collaboration between the Independent National Electoral Commission (INEC) and SIECs, and improving knowledge production and dissemination on SIECs.

These reforms aim to secure SIECs’ independence, improve their functionality, and promote credible local elections. Speaking during the official launch and presentation of the study in Abuja, Team Leader, Governance, Peace and Migration, EU Delegation to Nigeria and ECOWAS, Ruben Aguilera, explained that local elections were the most important election because they were the closest to the people.

Reiterating the EU’s commitment to strengthening and improving local democracy in Nigeria, Aguilera said, “There is a window of opportunity now because there is a constitutional reform process ongoing and we will continue to support this process by strengthening platforms of civic engagement.”

In his remarks, INEC Chairman, Prof. Mahmood Yakubu, while stressing the importance of local council elections, noted that if the country failed to get it right at the local council level, it would be unlikely that it would ever get it right at the top.

He, therefore, commended the efforts of DAI with funding support from the EU, for coming up with the study on the state of SIECs in Nigeria. Chairman, House Committee on Electoral Matters, Adebayo Balogun, added, “SIEC is a creation of the Constitution just like INEC. But in any country, there must still be some guiding principles. As much as SIECs should be able to regulate some of their activities, there must be basic laws to guide every one of them.

“INEC should, as of today, have the power to enforce the guidelines being used at the general election to be the basis for other elections at the local council. Therefore, if they want to have their election, there should be regulations that they must obey.

“Part of the ways to strengthen SIECs is to make them independent. If there is no financial independence, then we are not talking about independence.” DAI’s Team Lead, Rudolf Elbling, said, “This study has the objective to investigate the impediments and difficulties SIECs face to organise credible elections and produce recommendations for national and international stakeholders for cooperation and support, especially the National Assembly, House of Assembly, INEC and international partners.

Local governments play a critical role in addressing the everyday needs of citizens, such as infrastructure, education, and healthcare. Fair elections ensure that the best candidates, who understand the local issues and have the community’s best interests at heart, are elected.”

Election Administration Expert for DAI, Prof. Okechukwu Ibeanu, stated that the challenges SIECs face in conducting local elections include political interference, limited financial autonomy, and capacity constraints.