The Federation Account Allocation Committee (FAAC) has shared N1.354 trillion to the federal, state, and local government councils along with other beneficiaries.
This allocation, derived from revenues generated in June 2024, was distributed following the July FAAC meeting held at the auditorium of the Federal Ministry of Finance in Abuja.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, chaired the meeting, overseeing the distribution among the various tiers of government and beneficiaries.
A breakdown of the N1.354 trillion distributable revenue comprised: distributable statutory revenue of N142.514 billion; distributable Value Added Tax (VAT) revenue of N523.973 billion; Electronic Money Transfer Levy (EMTL) revenue of N15.692 billion; Exchange Rate Difference revenue, N472.192 billion and augmentation of N200 billion
In June 2024, total revenue available was N2.483 trillion. Deductions included N92.112 billion for the cost of collection and N1.037 trillion for transfers, interventions, and refunds.
Gross statutory revenue for June 2024 was N1.432 trillion, up from N1.223 trillion in May 2024. Similarly, VAT revenue increased from N497.665 billion in May 2024 to N562.685 billion in June 2024.
Allocation details show from the total distributable revenue of N1.354 trillion the federal government received N459.776 billion; state governments pocketed N461.979 billion while Local Government Councils will be credited with N337.019 billion
Additionally, N95.598 billion (13 percent of mineral revenue) was shared among the benefiting states as derivation revenue.
With regards to specific revenue components under the distributable statutory revenue of N142.514 billion, the federal government was allocated N48.952 billion; state governments N24.829 billion; local government councils N19.142 billion and beneficiaries of 13 percent got derivation revenue of N49.591 billion
Under distributable Value Added Tax (VAT) revenue of N523.973 billion), the federal government received N78.596 billion, state governments N261.987 billion and local government councils N183.391 billion.
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From the Electronic Money Transfer Levy (EMTL) revenue of N15.692 billion), the federal government went away with N2.354 billion, state governments received N7.846 billion and local government councils went home with N5.492 billion
Allocations from the Exchange Rate Difference revenue of N472.192 billion saw the federal government receiving N224.514 billion; state governments N113.877 billion; local government councils N87.794 billion and beneficiaries of the 13 percent derivation revenue shared N46.007 billion
At the meeting, it was agreed that N200 billion should be sourced from old savings for augmentation. From this amount, the federal government received N105.360 billion, state governments N53.440 billion and local government councils N41.200 billion
The communiqué noted significant increases in Companies Income Tax Oil (CIT) and VAT, with marginal rises in Import and Excise Duties and EMTL. However, decreases were noted in Royalty Crude, Petroleum Profit Tax (PPT), Rentals, and CET Levies. The balance in the Excess Crude Account (ECA) stood at $473,754.57.
