FAAC Distributes N1.358tn to Federal, State, LGs for July 2024

The Federation Account Allocation Committee (FAAC) on Friday shared a total sum of N1.358 trillion to the three tiers of government as Federation Allocation for July.

The disbursed amount was from a gross total of N2,613.791 trillion. generated during the reference period.  

A breakdown of the total distributable revenue of N1,358.075 trillion for July 2024, was drawn from Statutory Revenue of N161.593 billion, VAT revenue of N528.307 billion,  N18.818 billion from Electronic Money Transfer Levy (EMTL), N581.710 billion from Exchange Difference and N13.647 billion.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun presided over the FAAC meeting in Abuja where the disbursement was made.

In his welcome remarks, Edun commended members of the committee for their support to the President Bola Ahmed Tinubu-led administration, especially during the recent protests. 

He urged them to continue to support the efforts of the federal government in its determination to transform Nigeria’s economy for a better future

He commended the president for signing the National Minimum Wage Act into law, adding that its implementation will be of immense benefit to all Nigerians.

Citing a communique issued at the end of the meeting, the Director, Information and Public Relations, Ministry of Finance, Mohammed Manga, in a statement said the shared amount comprised Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED), and N13.647 billion from solid mineral revenue.

The federal government received N431.079 billion, states got N473.477 billion, local government councils got N343.703 Billion, while the oil producing states received N109.816 billion representing 13 per cent derivation or mineral revenue.

The sum of N99.756 billion was given for the cost of collection, while N109.816 billion was allocated for transfers intervention and refunds.

Gross revenue available from VAT for the month of July 2024, was N625.329 billion as against N562.685 billion distributed in the preceding month,  indicating an increase of  N62.644 billion.

From that amount, the sum of 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 receiveing N87.346 billion.

The states and local governments  got N291.154 billion and N203.807 billion respectively.

The statement explained that the Gross Statutory Revenue of N1,373.503 trillion received for the month was lower than the sum of N1,432.667 trillion received in the previous month by N45.517 billion, adding that rom the stated amount, N73.959 billion was allocated for the cost of collection and N1,137.951trillion for transfers, intervention and refunds.

“The remaining  balance of  N161.593 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N58.545 Billion, States received N29.695 Billion, the sum of N22.894 Billion was allocated to LGCs and N50.459 Billion was given to Derivation Revenue (13% Mineral producing States).

“Also, the sum of N19.602 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.823 Billion, States got N9.409 Billion, Local Government Councils received N6.586 Billion, while N0.784 Billion was allocated for Cost of Collection,” the statement said.

The sum of N581.710 billion from Exchange Difference, which was shared saw the federal government receiving N276.110 billion, states got N140.047 billion while the sum of N107.970 billion was allocated to local government councils.

Mineral producing states received N57.583 billion as 13 per cent derivation.

In the same vein, N13.647 billion solid mineral revenue, was shared, with the  federal government getting N6.255 billion, states received N3.172 billion, local government councils hot N2.446, while the sum of N1.774 billion was also allocated to as 13 per cent deviation.

Oil and Gas Royalty, Petroleum Profit Tax (PPT), VAT, Import Duty,  Electronic Money Transfer Levy (EMTL) and External Tarrif levies (CET) increased significantly, while Companies Income Tax (CIT) recorded a decrease. Excise Duties increased only marginally.

The balance in the Excess Crude Account (ECA) as at August 16, 2024 stood at $473,754.57.

Ndubuisi Francis

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