FAAC Distributes N1.36 Trillion to Federal, State, and Local Governments for July 2024

The Federation Account Allocation Committee (FAAC) has announced that it distributed a total of N1.36 trillion to the three tiers of government as Federation Allocation for July 2024.

The allocation was confirmed during the committee’s August 2024 meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The funds were distributed from a gross total of N2.61 trillion.

According to a statement released by the Director of Information and Public Relations at the Ministry of Finance, Mohammed Manga, the Federal Government received N431.1 billion, states were allocated N473.5 billion. Local Government Councils were given N343.7 billion. The statement detailed that the revenue sources contributing to the total allocation included Oil and Gas Royalty, Petroleum Profit Tax, Value Added Tax (VAT), Import Duty, Electronic Money Transfer Levy, and External Tariff Levies. Notably, the revenue from Companies Income Tax saw a decrease, while Excise Duties recorded a marginal increase.

The official communique from the meeting provided a breakdown of the distribution: “From the stated amount (N2.61 trillion), inclusive of Gross Statutory Revenue, VAT, Electronic Money Transfer Levy, Exchange Difference, and N13.65 billion from Solid Mineral Revenue, the Federal Government received N431.079 billion, the States received N473.477 billion, the Local Government Councils got N343.703 billion, while the Oil Producing States received N109.816 billion as Derivation, (13 percent of Mineral Revenue).”

In addition to these allocations, the sum of N99.756 billion was allocated for the cost of collection, and N109.816 billion was set aside for Transfers, Intervention, and Refunds.

The communique also highlighted the significant increase in VAT revenue, which totaled N625.33 billion for July 2024, up from N562.69 billion in the preceding month—a rise of N62.64 billion. Out of this amount, N25.01 billion was allocated for the cost of collection, and N18.01 billion was earmarked for Transfers, Intervention, and Refunds. The remaining N582.31 billion was distributed among the three tiers of government, with the Federal Government receiving N87.37 billion, the States N291.15 billion, and Local Government Councils N203.81 billion.

Despite the overall increase in VAT revenue, the Gross Statutory Revenue for July 2024 was N1.37 trillion, which was lower than the N1.43 trillion recorded in the previous month—a decrease of N45.52 billion. From the gross statutory revenue, N73.959 billion was allocated for the cost of collection, and N1.14 trillion for Transfers, Intervention, and Refunds. The remaining balance of N161.593 billion was distributed as follows: Federal Government (N58.55 billion), States (N29.69 billion), Local Government Councils (N22.89 billion), and Derivation Revenue (N50.46 billion for Mineral Producing States).

Furthermore, the Electronic Money Transfer Levy contributed N19.6 billion, which was shared among the three tiers of government: the Federal Government received N2.82 billion, States N9.41 billion, and Local Government Councils N6.59 billion. Additionally, N0.784 billion was allocated for the cost of collection.

The FAAC communique also reported N581.71 billion in revenue from the Exchange Difference. This was distributed as follows: Federal Government (N276.11 billion), States (N140.02 billion), Local Government Councils (N107.97 billion), and Derivation Revenue (N57.58 billion for Mineral Producing States).

The Solid Mineral Revenue contributed N13.65 billion to the total allocation. The Federal Government received N6.255 billion, the States N3.17 billion, Local Government Councils N2.446 billion, and N1.77 billion was allocated to Derivation Revenue (13 percent of Mineral Revenue).

The total revenue distributable for July 2024, drawn from various sources including Statutory Revenue, VAT, the Electronic Money Transfer Levy, Exchange Difference, and Solid Mineral Revenue, amounted to N1.358.1 trillion.

As of August 2024, the balance in Nigeria’s Excess Crude Account stands at $473,754.57.

In his remarks during the meeting, Finance Minister Wale Edun commended the members of the Federation Account Allocation Committee for their continued support, especially during the recent protests. He urged them to maintain their support for the Federal Government’s efforts to transform Nigeria’s economy, which he believes is crucial for the nation’s future. Edun also praised President Bola Tinubu for signing the National Minimum Wage Act into law, noting that its implementation will greatly benefit all Nigerians.