The Federation Account Allocation Committee (FAAC) convened in August 2024 to distribute N1,358.075 trillion among the three tiers of government for the month of July 2024.
This distribution came from a gross revenue total of N2,613.791 trillion, as announced during the meeting chaired by Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
The allocation was derived from several revenue streams, including Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED), and N13.647 billion from Solid Mineral Revenue. The Federal Government received N431.079 billion, while the States received N473.477 billion, and Local Government Councils were allocated N343.703 billion. Additionally, Oil-Producing States received N109.816 billion as Derivation, which represents 13% of the Mineral Revenue.
In the allocation breakdown, N99.756 billion was designated for the cost of collection, and N109.816 billion was allocated for Transfers, Intervention, and Refunds.
The FAAC communique revealed a notable increase in the Gross Revenue available from VAT for July 2024, amounting to N625.329 billion compared to N562.685 billion from the previous month. This increase of N62.644 billion allowed for the allocation of N25.013 billion for the cost of collection and N18.009 billion for Transfers, Intervention, and Refunds. Subsequently, the remaining N582.307 billion was distributed among the three tiers of government: the federal government received N87.346 billion, states got N291.154 billion, and local government councils received N203.807 billion.
However, the Gross Statutory Revenue for the month, totaling N1,373.503 trillion, saw a decline of N45.517 billion compared to the previous month’s earnings. From this revenue, N73.959 billion was allocated for collection costs, while a total of N1,137.951 trillion was assigned for Transfers, Intervention, and Refunds. The remaining balance of N161.593 billion was then distributed to the three tiers, with the Federal Government receiving N58.545 billion, States getting N29.695 billion, and Local Government Councils receiving N22.894 billion. Additionally, N50.459 billion was allocated for Derivation Revenue.
The report further detailed the distribution of N19.602 billion from the Electronic Money Transfer Levy, with the Federal Government receiving N2.823 billion, States getting N9.409 billion, and Local Government Councils receiving N6.586 billion. The cost of collection for this segment was allocated N0.784 billion.
From the Exchange Difference, which totalled N581.710 billion, the Federal Government received N276.110 billion, States got N140.047 billion, and Local Government Councils received N107.970 billion, with N57.583 billion earmarked for Derivation.
Additionally, N13.647 billion from Solid Mineral Revenue was shared among the three tiers, with the Federal Government receiving N6.255 billion, States getting N3.172 billion, and Local Government Councils receiving N2.446 billion, while N1.774 billion was allocated for Derivation.
The FAAC report highlighted a significant increase in Oil and Gas Royalty, Petroleum Profit Tax, VAT, Import Duty, and External Tariff levies, while Companies Income Tax recorded a decrease. The overall revenue distributable for July 2024 included Statutory Revenue of N161.593 billion, VAT of N528.307 billion, N18.818 billion from EMTL, N581.710 billion from Exchange Difference, and N13.647 billion from Solid Mineral Revenue, totaling N1,358.075 trillion.
As of August 2024, the balance in the Excess Crude Account (ECA) stands at $473,754.57.
During the meeting, Minister Wale Edun commended the FAAC members for their continued support of President Bola Ahmed Tinubu’s administration, particularly during recent protests. He encouraged ongoing support for the Federal Government’s efforts to transform Nigeria’s economy for future generations. Edun also praised President Tinubu for signing the National Minimum Wage Act into law, emphasizing its potential benefits for all Nigerians.
