In its June 2024 meeting, the Federation Accounts Allocation Committee (FAAC), chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disbursed N1.143 trillion to the Federal Government, States, and Local Government Councils.
A communiqué from FAAC outlined the revenue sources: N157.183 billion from statutory revenue, N463.425 billion from Value Added Tax (VAT), N15.146 billion from the Electronic Money Transfer Levy (EMTL), and N507.456 billion from Exchange Rate Difference.
For May 2024, the total revenue was N2.324 trillion, with N76.647 billion deducted for collection costs and N1.104 trillion for transfers, interventions, and refunds.
The gross statutory revenue for May was N1.223 trillion, slightly lower by N9.604 billion compared to April’s N1.233 trillion. VAT revenue for May was N497.665 billion, a decrease of N3.255 billion from April’s N500.920 billion.
From the N1.143 trillion distributable revenue, the Federal Government received N365.813 billion, State Governments N388.419 billion, and Local Government Councils N282.476 billion. Additionally, States received N106.502 billion as 13 percent of mineral derivation revenue.
The N157.183 billion statutory revenue was divided with the Federal Government getting N61.010 billion, State Governments N30.945 billion, Local Government Councils N23.857 billion, and N41.371 billion to States as derivation revenue.
From the N463.425 billion VAT revenue, the Federal Government received N69.514 billion, State Governments N231.713 billion, and Local Government Councils N162.199 billion. EMTL funds of N15.146 billion were split with the Federal Government receiving N2.272 billion, State Governments N7.573 billion, and Local Government Councils N5.301 billion.
The N507.456 billion from Exchange Rate Difference was allocated with N233.017 billion to the Federal Government, N118.189 billion to State Governments, and N91.119 billion to Local Government Councils. Benefiting States received an additional N65.131 billion as 13 percent mineral derivation revenue.
The communiqué noted increases in Companies Income Tax (CIT) and Petroleum Profit Tax (PPT), while revenues from Import and Excise Duties, Royalty on Crude and Gas, EMTL, CET Levies, and VAT decreased.
As of May 2024, the Excess Crude Account (ECA) balance was $473,754.57.
Minister Edun emphasized the Federal Government’s dedication to equitable and transparent revenue distribution, aiming to foster economic growth and development at all government levels.
