Business a.m.
The Federation Account Allocation Committee (FAAC) has distributed a total sum of N1.358 trillion among the three tiers of government in Nigeria as federation revenue allocation for July. The disbursement came from the gross total of N2.613 trillion generated during the reference period.
Wale Edun, the minister of finance and coordinating minister of the economy, chaired the FAAC meeting in Abuja, recently, where the allocation of N1.358 trillion to the federal government, 36 states including the Federal Capital Territory and 774 local governments was made.
Citing a communique issued at the end of the meeting, Mohammed Manga, the director, information and public relations, Ministry of Finance, in a statement said the shared amount comprised distributable statutory revenue of N161.593 billion, distributable Value Added Tax (VAT) revenue of N582.307 billion, Electronic Money Transfer Levy (EMTL) revenue of N18.818 billion, exchange difference revenue of N581.710 billion, and solid mineral revenue of N13.647 billion.
In July 2024, the federal government received N431.079 billion, the states were allocated N473.477 billion, the local government councils received N343.703 billion, and the oil-producing states were allocated N109.816 billion, representing 13 percent derivation or mineral revenue.
The Federation Account Allocation Committee disbursed N99.756 billion to cover cost of collection, while also setting aside N109.816 billion for transfers, interventions and refunds.
Meanwhile, the gross VAT revenue for July 2024 stood at N625.329 billion, indicating an increase of N62.644 billion from the previous month’s distribution of N562.685 billion. From that amount, N25.013 billion was allocated for the cost of collection, N18.009 billion went for transfers, intervention and refunds. The remaining sum of N582.307 billion was distributed to the three tiers of government, with the federal government receiving N87.346 billion, while the states and local governments got N291.154 billion and N203.807 billion respectively.
Further breakdown of the allocation showed that the gross statutory revenue for July 2024 stood at N1,373.503 trillion, representing a decrease of N45.517 billion from the previous month’s amount of N1,432.667 trillion. From this amount, N73.959 billion was allocated for cost of collection while N1,137.951 trillion was set aside for transfers, interventions and refunds.
Of the N161.593 billion distributable statutory revenue, the federal government received N58.545 billion, states received N29.695 billion, N22.894 billion was allocated to the local governments, and N50.459 billion (13% of mineral revenue) was shared to the benefiting states as derivation revenue.
From the N582.307 billion distributable Value Added Tax (VAT) revenue, the federal government was allocated N87.346 billion, the state governments received N291.154 billion, and the local government councils received N203.807 billion.
Out of the N18.818 billion Electronic Money Transfer Levy (EMTL) revenue collected for July 2024, the federal government received N2.823 billion, state governments got N9.409 billion, while local government councils received N6.586 billion.
Concerning the N581.710 billion Exchange Difference revenue, the federal government received N276.110 billion and the state governments received N140.047 billion. The local government councils received N107.970 billion, while the sum of N57.583 billion (13% of mineral revenue) was shared to the benefiting states as derivation revenue.
From the N13.647 billion in solid mineral revenue, the federal government got N6.255 billion and the state governments received N3.172 billion. The local government councils received N2.446 billion, while the sum of N1.774 billion (13% of mineral revenue) was allocated to the benefiting states as derivation revenue.
The communiqué issued by the Federation Account Allocation Committee noted significant increases in oil and gas royalty, petroleum profit tax , value added tax , import duty, electronic money transfer levy and CET levies, while companies income tax recorded a decrease and excise duties increased only marginally.
The balance in the excess crude account as of July 2024 was $473,754.5.
