The Federation Account Allocation Committee (FAAC) has disclosed that the three tiers of government shared a total sum of ₦1.35 trillion in June.
This amount was part of the ₦2.48 trillion revenue generated by various agencies and is ₦150 million more than the ₦1.2 trillion shared in May.
A statement by the Director of Information and Public Relations at the Finance Ministry, Mohammed Manga, on Tuesday, detailed the allocations: the Federal Government received ₦459.776 billion, the States received ₦461.979 billion, and the Local Government Councils (LGCs) received ₦337.019 billion.
The Director did not confirm whether the LGCs administered by caretaker committees received statutory allocations as directed by the Supreme Court. Last week, the apex court ordered the Federal Government to immediately start the direct payment of local government funds to their exclusive accounts, mandating immediate compliance and stating that no state government should be paid monies meant for Local Governments.
The statement read, “The Federation Account Allocation Committee, at its July 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total sum of ₦1.35 trillion to the three tiers of government as Federation Allocation from a gross total of ₦2.48 trillion.
“From the stated amount, inclusive of Gross Statutory Revenue, Value Added Tax, Electronic Money Transfer Levy, Exchange Difference, and an Augmentation of ₦200 billion, the Federal Government received ₦459.776 billion, the States received ₦461.979 billion, the Local Government Councils got ₦337.019 billion, while the Oil Producing States received ₦95.598 billion as Derivation, (13 per cent of Mineral Revenue).”
It added that the sum of ₦92.11 billion was allocated for the cost of collection, while ₦1.037 billion was allocated for transfer intervention and refunds.
The statement noted significant increases in Companies’ Income Tax and Value Added Tax, marginal increases in Import and Excise Duties and Electronic Money Transfer levies, and considerable decreases in Petroleum Profit, Royalty Crude, Rentals, and Customs External Tariff levies.
The communique issued by the committee at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax for June 2024 was ₦562.685 billion, up from ₦497.66 billion in the preceding month, representing an increase of ₦65.020 billion.
The communique stated, “From that amount, the sum of ₦22.507 billion was allocated for the cost of collection and the sum of ₦16.205 billion was given for transfers, intervention, and refunds. The remaining sum of ₦523.973 billion was distributed to the three tiers of government, of which the Federal Government got ₦78.596 billion, the States received ₦261.987 billion, and Local Government Councils got ₦183.39 billion.
The Gross Statutory Revenue of ₦1.24 trillion was received for the month. From this amount, ₦68.95 billion was allocated for the cost of collection and a total of ₦1.02 trillion for transfers, intervention, and refunds. The remaining balance of ₦142.514 billion was distributed as follows: the Federal Government got ₦48.95 billion, States received ₦24.83 billion, LGCs got ₦19.14 billion, and ₦49.59 billion was allocated to Derivation Revenue (13 per cent Mineral producing States).
Also, the sum of ₦16.35 billion from the Electronic Money Transfer Levy was distributed as follows: the Federal Government received ₦2.354 billion, States got ₦7.85 billion, Local Government Councils received ₦5.49 billion, and ₦0.654 billion was allocated for the cost of collection.
The communique also disclosed the sum of ₦472.19 billion from Exchange Difference, shared as follows: Federal Government received ₦224.51 billion, States got ₦113.88 billion, Local Government Councils received ₦87.79 billion, and ₦46.01 billion was allocated to Derivation (13 per cent of Mineral Revenue).
Additionally, an Augmentation of ₦200 billion was shared as follows: the Federal Government received ₦105.4 billion, the States received ₦53.44 billion, and Local Government Councils received ₦41.200 billion.
The total distributable revenue for June 2024 was ₦1.36 trillion, drawn from Statutory Revenue of ₦142.5 billion, Value Added Tax of ₦523.98 billion, ₦15.69 billion from Electronic Money Transfer Levy, ₦472.19 billion from Exchange Difference, and an Augmentation of ₦200 billion.
The balance in the Excess Crude Account as of July 2024 stands at $473,754.57, according to the communique.
