FAAC Distributes N1.35tn As Federation Account Revenue Rises To N2.48tn

The Federation Account Allocation Committee (FAAC), on Tuesday shared a total sum of N1.354 trillion to the three tiers of government as accruals into the Federation Account rose to N2.483 trillion  in June 2024.

From the gross revenue, which is about  N159 billion higher than the sum of N2.324.792 trillion garnered in the previous month of May, total deduction for cost of collection stood at N92.112 billion while total transfers, interventions and refunds was N1.037 trillion, leaving the sum of N1.354 trillion for distribution among the relevant stakeholders.

The shared amount of N1.354 trillion was about N211 billion higher than the sum of N1.143 trillion disbursed for the month of May.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun presided over the FAAC meeting in Abuja on Tuesday, a statement from the Office of the Accountant-General of the Federation (OAGF) said.

Citing a communiqué issued by the FAAC at the end of the meeting,  the statement said that the  of N1.354 trillion total distributable revenue comprised distributable statutory revenue of N142.514 billion, distributable Value Added Tax (VAT) revenue of N523.973 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.692 billion, exchange difference revenue of N472.192 billion and augmentation of N200.000 billion.

From the N1.354 trillion total distributable revenue, the federal government received the sum of N459.776 billion, states got N461.979 billion while the local government councils received N337.019 billion.

A total sum of N95.598 billion (representing 13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

On the N142.514 billion distributable statutory revenue, the communiqué stated that the federal government received N48.952 billion, states  received N24.829 billion and the local government councils received N19.142 billion.

The sum of N49.591 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

The federal government received N78.596 billion, states got N261.987 billion, and the local government  received N183.391 billion from the N523.973 billion distributable VAT revenue.

Also, the federal government received a total sum of N2.354 billion from the N15.692 billion (EMTL, the  states  received N7.846 billion while the local government councils received N5.492 billion.

Similarly, from the N472.192 billion exchange difference revenue, the federal government received N224.514 billion, the states received N113.877 billion and the local government councils received N87.794 billion.

A total sum of N46.007 billion, that is 13 per cent of mineral revenue, was shared to the benefiting states as derivation revenue.

The federal government also received N105.360 billion from the  N200 billion augmentation, the state governments received N53.440 billion and the local government councils got N41.200 billion.

Providing further details, the communique disclosed that from the total revenue of N2.483 trillion in the month of June 2024, total deduction for cost of collection stood at N92.112 billion while total transfers, interventions and refunds was N1.037 trillion.  

In June 2024, a gross revenue of N562.685 billion was available from the VAT. This was higher than the N497.665 billion available in the month of May 2024 by N65.020 billion.  

According to the communiqué, in the month of June 2024, Companies Income Tax Oil (CIT) and VAT increased significantly while Import and Excise Duties and EMTL increased marginally. 

Royalty Crude, Petroleum Profit Tax (PPT), Rentals and CET Levies recorded considerable decreases.         

The balance in the Excess Crude Account (ECA) remained $473,754.57.

Ndubuisi Francis

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