The Federation Account Allocation Committee (FAAC) has distributed a total of N1.358 trillion among the three tiers of government for July 2024.
The allocation is drawn from a gross revenue of N2.613 trillion, encompassing Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED), and Solid Mineral Revenue.
From the total sum, the Federal Government received N431.079 billion, the States were allocated N473.477 billion, and Local Government Councils (LGCs) took N343.703 billion. Oil-producing states received N109.816 billion, representing 13% of the mineral derivation revenue.
A communiqué issued after the FAAC meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, outlined the revenue breakdown. For the month of July 2024, the gross revenue from VAT was N625.329 billion, showing an increase of N62.644 billion compared to the previous month’s distribution of N562.685 billion.
However, gross statutory revenue decreased slightly to N1.373 trillion from June’s figure of N1.432 trillion. Out of the statutory revenue, N73.959 billion was allocated for the cost of collection, and N1.137 trillion for transfers, interventions, and refunds.
The remaining N161.593 billion was distributed as follows: Federal Government received N58.545 billion, States got N29.695 billion, Local Government Councils were allocated N22.894 billion, and N50.459 billion went to the oil-producing states as derivation revenue.
An additional N19.602 billion was generated from the EMTL and shared among the tiers of government. The Federal Government received N2.823 billion, the States took N9.409 billion, and the LGCs got N6.586 billion, while N0.784 billion was reserved for the cost of collection.
Moreover, N581.710 billion from the Exchange Difference was distributed, with the Federal Government receiving N276.110 billion, States allocated N140.047 billion, Local Government Councils taking N107.970 billion, and N57.583 billion for derivation revenue.
The sum of N13.647 billion from Solid Mineral Revenue was also shared. The Federal Government received N6.255 billion, States received N3.172 billion, LGCs got N2.446 billion, and N1.774 billion was allocated as derivation revenue.
The report also highlighted significant increases in Oil and Gas Royalty, Petroleum Profit Tax (PPT), VAT, Import Duty, and EMTL, while Companies Income Tax (CIT) saw a decrease, and Excise Duties recorded marginal growth.
The total distributable revenue for July 2024 included N161.593 billion from Statutory Revenue, N528.307 billion from VAT, N18.818 billion from EMTL, N581.710 billion from Exchange Difference, and N13.647 billion from Solid Mineral Revenue, bringing the total to N1.358 trillion.
As of August 2024, the balance in the Excess Crude Account (ECA) stood at $473,754.57.
