The Federation Account Allocation Committee (FAAC), in its August 2024 meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced the distribution of N1.358 trillion to the three tiers of government.
The allocation, derived from a gross total of N2.613 trillion, covers the month of July 2024.
The distributed funds encompass various revenue streams, including Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED), and Solid Mineral Revenue.
The Federal Government received N431.079 billion, the States were allocated N473.477 billion, Local Government Councils were given N343.703 billion, and the Oil Producing States received N109.816 billion as Derivation (13% of Mineral Revenue).
Additionally, N99.756 billion was set aside for the cost of collection, and N109.816 billion was allocated for Transfers, Intervention, and Refunds.
The Communiqué issued by FAAC highlighted an increase in revenue from VAT for July 2024, amounting to N625.329 billion, compared to N562.685 billion in the preceding month—an increase of N62.644 billion.
After deducting N25.013 billion for the cost of collection and N18.009 billion for Transfers, Intervention, and Refunds, the remaining N582.307 billion was distributed among the Federal Government (N87.346 billion), States (N291.154 billion), and Local Government Councils (N203.807 billion).
The Gross Statutory Revenue for July 2024 was N1.373 trillion, which was N45.517 billion less than the previous month’s total of N1.432 trillion.
After allocating N73.959 billion for the cost of collection and N1.137 trillion for Transfers, Intervention, and Refunds, the balance of N161.593 billion was distributed as follows: Federal Government (N58.545 billion), States (N29.695 billion), Local Government Councils (N22.894 billion), and Derivation Revenue (N50.459 billion).
The Electronic Money Transfer Levy (EMTL) generated N19.602 billion, which was distributed among the Federal Government (N2.823 billion), States (N9.409 billion), and Local Government Councils (N6.586 billion), with N0.784 billion allocated for the cost of collection.
Additionally, N581.710 billion from Exchange Difference was shared, with the Federal Government receiving N276.110 billion, States N140.047 billion, Local Government Councils N107.970 billion, and N57.583 billion for Derivation.
Solid Mineral Revenue for July 2024 amounted to N13.647 billion, distributed as follows: Federal Government (N6.255 billion), States (N3.172 billion), Local Government Councils (N2.446 billion), and Derivation (N1.774 billion).
The report noted significant increases in Oil and Gas Royalty, Petroleum Profit Tax (PPT), VAT, Import Duty, EMTL, and External Tariff Levies (CET). However, Companies Income Tax (CIT) saw a decrease, and Excise Duties recorded only a marginal increase.
The total revenue distributable for July 2024, drawn from Statutory Revenue (N161.593 billion), VAT (N528.307 billion), EMTL (N18.818 billion), Exchange Difference (N581.710 billion), and Solid Mineral Revenue (N13.647 billion), amounted to N1.358 trillion.
The balance in the Excess Crude Account (ECA) as of August 2024 stands at $473,754.57.
Edun, while addressing the FAAC, commended the members for their support of the Bola Ahmed Tinubu administration, particularly during recent protests. He encouraged continued collaboration to transform Nigeria’s economy.
Edun also praised President Tinubu for signing the National Minimum Wage Act into law, emphasizing its immense benefits for all Nigerians.
