FAAC Allocates ₦1.2 Trillion to FG, States, LGs for August

The Federal Accounts Allocation Committee (FAAC) has announced the disbursement of ₦1.2 trillion in revenue for August 2024, distributed among the Federal Government, States, and Local Government Councils. This was disclosed at FAAC’s September 2024 meeting held in Abuja, as per a statement released by Bawa Mokwa, Director of Press and Public Relations.

The August allocation represents a decrease of 11%—or ₦155 billion—compared to the ₦1.358 trillion disbursed in July 2024.

“A total sum of ₦1.203 trillion in Federation Accounts Revenue for August 2024 has been shared among the Federal Government, States, and Local Government Councils,” the statement confirmed.

The revenue distributed includes ₦186.636 billion in statutory revenue, ₦533.895 billion from the Value Added Tax (VAT), ₦15.02 billion from the Electronic Money Transfer Levy, and ₦468.25 billion in exchange rate difference.

The total revenue generated for August amounted to ₦2.278 trillion, with ₦81.98 billion deducted for collection costs.

Of the ₦1.203 trillion total distributable revenue, the Federal Government received ₦374.93 billion, State Governments received ₦422.86 billion, and Local Government Councils received ₦306.53 billion. Additionally, ₦99.47 billion, representing 13% of mineral revenue, was allocated to oil-producing states as derivation revenue.

Gross statutory revenue for August totaled ₦1.22 trillion, a decline of ₦165.99 billion compared to the ₦1.39 trillion collected in July. VAT collections also saw a drop, with ₦573.34 billion collected in August, down by ₦51.99 billion from the ₦625.33 billion recorded in July.

From the ₦186.636 billion statutory revenue, the Federal Government received ₦71.62 billion, States ₦36.33 billion, and Local Governments ₦28.1 billion, with ₦50.68 billion allocated as derivation revenue.

The distribution of VAT revenue saw the Federal Government receive ₦80.084 billion, States ₦266.948 billion, and Local Governments ₦186.86 billion.

Regarding the ₦15.02 billion from the Electronic Money Transfer Levy, the Federal Government was allocated ₦2.25 billion, States ₦7.509 billion, and Local Governments ₦5.26 billion.

For the ₦468.25 billion in exchange rate difference, the Federal Government received ₦220.964 billion, States ₦112.08 billion, and Local Governments ₦86.41 billion, with ₦48.79 billion shared as derivation revenue.

The communiqué also noted that key revenue sources, including oil and gas royalties, Petroleum Profit Tax, VAT, import and excise duties, and company income tax, recorded declines in August. The balance in the Excess Crude Account (ECA) stood at $473,754.57.