The Federation Account Allocation Committee (FAAC) has disbursed a total of ₦1.36 trillion to the federal, state, and local governments as part of the Federation Allocation for July 2024. This announcement came following the FAAC meeting in August 2024, which was chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The disbursed amount of ₦1.36 trillion was derived from a gross total of ₦2.61 trillion. According to a statement signed by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, the Federal Government received ₦431.1 billion, while the states and local government councils were allocated ₦473.5 billion and ₦343.7 billion, respectively.
The statement also highlighted a significant increase in revenues from Oil and Gas Royalty, Petroleum Profit Tax, Value Added Tax (VAT), Import Duty, Electronic Money Transfer Levy, and external tariff levies. However, Companies Income Tax saw a decrease, and Excise Duties experienced only a marginal increase.
A communique from the meeting detailed the distribution of the gross revenue, which included Gross Statutory Revenue, VAT, Electronic Money Transfer Levy, Exchange Difference, and ₦13.647 billion from Solid Mineral Revenue. The Federal Government received ₦431.079 billion, the states ₦473.477 billion, local governments ₦343.703 billion, and oil-producing states ₦109.816 billion as derivation, which represents 13 percent of mineral revenue. Additionally, ₦99.756 billion was allocated for the cost of collection, and ₦109.816 billion was set aside for transfers, intervention, and refunds.
The communique noted that the gross revenue from VAT for July 2024 was ₦625.33 billion, an increase of ₦62.64 billion from the ₦562.69 billion distributed in the previous month. Out of this, ₦25.01 billion was allocated for the cost of collection, and ₦18.01 billion was earmarked for transfers, intervention, and refunds. The remaining ₦582.31 billion was distributed among the three tiers of government, with the Federal Government receiving ₦87.37 billion, the states ₦291.15 billion, and local governments ₦203.81 billion.
For the month of July, gross statutory revenue amounted to ₦1.37 trillion, slightly lower than the ₦1.43 trillion received in the previous month, marking a decrease of ₦45.52 billion. From this amount, ₦73.959 billion was allocated for the cost of collection, while ₦1.14 trillion was set aside for transfers, intervention, and refunds. The remaining ₦161.593 billion was distributed, with the Federal Government receiving ₦58.55 billion, the states ₦29.69 billion, local governments ₦22.89 billion, and oil-producing states ₦50.46 billion for derivation.
The communique further disclosed that ₦19.6 billion from the Electronic Money Transfer Levy was distributed, with the Federal Government receiving ₦2.82 billion, the states ₦9.41 billion, and local governments ₦6.59 billion. Additionally, ₦0.784 billion was allocated for the cost of collection.
An exchange difference of ₦581.71 billion was also shared, with the Federal Government receiving ₦276.11 billion, the states ₦140.02 billion, local governments ₦107.97 billion, and ₦57.58 billion allocated for derivation. The communique also noted the distribution of ₦13.647 billion from Solid Mineral Revenue, with the Federal Government receiving ₦6.255 billion, the states ₦3.17 billion, local governments ₦2.446 billion, and ₦1.77 billion allocated for derivation.
In total, the distributable revenue for July 2024 included ₦161.59 billion from statutory revenue, ₦528.31 billion from VAT, ₦18.82 billion from the Electronic Money Transfer Levy, ₦581.71 billion from the exchange difference, and ₦13.65 billion from solid minerals, bringing the total to ₦1.358.1 trillion.
The balance in the Excess Crude Account as of August 2024 stands at $473,754.57.
During the FAAC meeting, Minister Wale Edun commended the committee members for their support, especially during recent protests. He urged them to continue backing the Federal Government’s efforts to transform Nigeria’s economy and praised President Tinubu for signing the National Minimum Wage Act into law, noting its significant benefits for all Nigerians.
