In August 2024, the Federal, State, and Local Governments in Nigeria collectively shared ₦1.2 trillion from the federation account, marking one of the highest disbursements this year.
The Federal Government, states and local government councils in the country have received a shared total sum of ₦1.203 trillion from federation accounts revenue for June 2024.
In September 2024, the Federation Accounts Allocation Committee (FAAC) convened a meeting in Abuja. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun chaired this gathering wherein the revenue was distributed among all present parties.
Bawa Mokwa, who serves as the spokesperson for the Accountant General of the Federation on FAAC matters, announced this information in a statement released on Tuesday.
During his explanation, he indicated that the total distributable revenue of ₦1.203 trillion comprised four main categories: a distributable statutory revenue of ₦186.636 billion, distributable Value Added Tax (VAT) revenue totaling ₦533.895 billion, Electronic Money Transfer Levy (EMTL) generating revenues worth ₦15.017 billion and Exchange Difference accruing income amounting to₦468.245 billion.
The Excess Crude Account (ECA) recorded a balance of $473,754.57 for the previous month.
The Excess Crude Account (ECA) recorded a balance of $473,754.57 for the previous month.
Please refer to the complete statement provided below:
Revenue of N1.203 trillion for August 2024 will be shared among FG, states, and LGCs.
The Federal Government, States and Local Government Councils in the country have received a shared amount of N 1.203 trillion from the August 2024 Federation Accounts Revenue total sum.
In Abuja, during the September 2024 meeting of the Federation Accounts Allocation Committee (FAAC), an announcement was made regarding revenue distribution.
The distributable revenue for a sum of N1.203 trillion was composed of different components, namely the statutory revenue amounting to N186.636 billion, value-added tax (VAT) revenue totaling N533.895 billion, electronic money transfer levy (EMTL) income at N15.017 billion and exchange difference proceeds reaching up to N468.245 billion respectively.
According to a statement by the Federation Accounts Allocation Committee (FAAC), the available revenue for August 2024 was N2.278 trillion. The total deduction made for cost of collection amounted to N81.975 billion, leaving transfers, interventions and refunds at N992.617 billion in total.
As per the communication, the month of August 2024 witnessed a gross statutory revenue receipt of N1.221 trillion, indicating a decrease from July 2024’s amount of N1.387 trillion by N165.994 billion.
In August 2024, the Value Added Tax (VAT) brought in a gross revenue of N573.341 billion, which was a decrease of N51.988 billion compared to July 2024 when there was N625.329 billion available from VAT.
According to the communication, out of the total distributable revenue amounting to N1.203 trillion, a sum of N374.925 billion was received by the Federal Government and an aggregate amount of N422.861 billion went into State Governments’ coffers while Local Government Councils obtained a grand total of N306.533 billion in funds allocation for their activities during this period. Furthermore, deriving 13% from mineral revenues equated to receiving a whopping sum totalling up at around N99.474 billion which got distributed as derivation revenue among all related benefiting states with respectto this source category involved therein.annotation: “communicate” is another form or spelling variant used occasionally insteadof its more recognisable expression such as ‘communication’.
According to the communiqué, N186.636 billion in distributable statutory revenue was allocated. Of this total amount, the Federal Government received N71.624 billion while State Governments were allotted N36.329 billion and Local Government Councils received N28.008 billion. Additionally, a sum of N50.675 which equals 13% of mineral revenue was distributed as derivation revenue among qualifying States that benefited from it .
Out of the total distributable Value Added Tax (VAT) revenue which amounted to N533.895 billion, the Federal Government received an allocation of N80.084 billion while State Governments and Local Government Councils were allocated with sums of N266.948 billion and N186.863 billion respectively.
The Federal Government garnered N2.252 billion from the total amount of N15.017 billion collected as Electronic Money Transfer Levy (EMTL). The State Governments got N7.509 billion, while Local Government Councils received a sum of N5.256 billion in their kitty.
According to the communiqué, out of the N468.245 billion Exchange Difference revenue, the Federal Government received N220.964 billion whereas State Governments were allocated a sum of N112.076 billion and Local Government Councils got an amount totaling up to N86.406 billion respectively; in addition, benefiting States also shared a total sum calculated at 13% of mineral revenue which amounted to approximately N48.799billion as derivation revenue distribution allocation for their share from this source income stream..
Decreases were observed in Oil and Gas Royalty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import and Excise Duties, Electronic Money Transfer Levy (EMTL), CET Levies, and Companies Income Tax (CIT) during August 2024.
The balance in the ECA was $473,754.57
Bawa Mokwa
Director (Press and Public Relations)
