The Federation Account Allocation Committee (FAAC) announced that the disbursement to the federal, state, and local governments surged by N200 billion from N1.143 trillion in June to N1.354 trillion in July.
The FAAC, chaired by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, detailed the distribution of funds among the three tiers of government.
The Federal Government received N459.776 billion, while the states were allocated N461.979 billion.
Local Government Councils received N337.019 billion, and the Oil Producing States benefited from N95.598 billion as Derivation, which accounts for 13% of Mineral Revenue.
The FAAC communique highlighted the distribution breakdown, stating that N92.112 billion was set aside for the cost of collection, while a substantial N1.037 trillion was earmarked for transfers, interventions, and refunds.
The total revenue distributable for June 2024, amounting to N2.483 trillion, was derived from various sources, including Statutory Revenue of N142.514 billion, Value Added Tax (VAT) of N523.973 billion, N15.692 billion from the Electronic Money Transfer Levy (EMTL), N472.192 billion from Exchange Difference, and an Augmentation of N200 billion.
The communique also indicated that the gross revenue from VAT for June 2024 stood at N562.685 billion, an increase of N65.020 billion from the previous month’s N497.665 billion.
From this amount, N22.507 billion was allocated for the cost of collection, and N16.205 billion was designated for transfers, interventions, and refunds.
The remaining N523.973 billion was distributed among the federal, state, and local governments, with the Federal Government receiving N78.596 billion, the states N261.987 billion, and the Local Government Councils N183.391 billion.
Further, the FAAC reported a gross statutory revenue of N1.23 trillion for June 2024. From this amount, N68.951 billion was allocated for the cost of collection, and N1.021 trillion was set aside for transfers, interventions, and refunds.
The balance of N142.514 billion was distributed among the three tiers of government, with the Federal Government receiving N48.952 billion, the states N24.829 billion, Local Government Councils N19.142 billion, and N49.591 billion allocated to derivation revenue for mineral-producing states.
The Electronic Money Transfer Levy (EMTL) yielded N16.346 billion, which was distributed as follows: the Federal Government received N2.354 billion, the states N7.846 billion, Local Government Councils N5.492 billion, and N0.654 billion was allocated for the cost of collection.
Also, N472.192 billion from Exchange Difference was distributed, with the Federal Government receiving N224.514 billion, the states N113.877 billion, Local Government Councils N87.794 billion, and N46.007 billion allocated for derivation revenue.
An augmentation of N200 billion was also noted, from which the Federal Government received N105.360 billion, the states N53.440 billion, and Local Government Councils N41.200 billion.
The FAAC communique concluded by noting that the balance in the Excess Crude Account (ECA) stood at $473,754.57 as of July 2024.
This significant financial distribution reflects an upward trend in government revenues, providing a much-needed fiscal boost across all tiers of government amid ongoing economic challenges.
