•New Naira notes
At yesterday’s meeting of the Federation Accounts Allocation Committee (FAAC) in Abuja, a total sum of N1.358 trillion was shared among the Federal Government, State Governments, and Local Government Councils in Nigeria.
This allocation, which came from the July 2024 Federation Accounts Revenue, is aimed at promoting equitable distribution of resources across the country.
According to the communiqué issued at the end of the meeting, the Federal Government received a cumulative sum of N431.079 billion, while state governments were allocated N473.477 billion. Local governments received N343.703 billion, and oil-producing states were granted N109.816 billion.
The breakdown of the N1.358 trillion total distributable revenue includes N161.593 billion as distributable statutory revenue, N582.307 billion as distributable Value Added Tax (VAT) revenue, and N18.818 billion as Electronic Money Transfer Levy (EMTL) revenue. Additionally, the revenue comprised N581.710 billion from Exchange Difference revenue and N13.647 billion from Solid Mineral revenue.
The FAAC communiqué further revealed that the total revenue available in July 2024 amounted to N2.613 trillion. After deducting the cost of collection, which stood at N99.756 billion, the total transfers, interventions, and refunds amounted to N1.155 trillion.
The gross statutory revenue for July 2024 stood at N1.387 trillion, which represents a decline of N45.517 billion compared to June 2024. In terms of Value Added Tax (VAT), N625.329 billion was generated in July 2024, indicating an increase of N62.644 billion compared to the previous month.
From the total distributable revenue of N1.358 trillion, the Federal Government received N431.079 billion, while the State Governments received N473.477 billion. The Local Government Councils received N343.703 billion, and the oil-producing states were granted N109.816 billion as derivation revenue, amounting to 13% of mineral revenue.
Breaking down the distributable statutory revenue of N161.593 billion, the Federal Government received N58.545 billion, while the State Governments received N29.695 billion. The Local Government Councils received N22.894 billion, and the benefiting states received N50.459 billion as 13 percent derivation revenue.
Regarding the distributable Value Added Tax (VAT) revenue of N582.307 billion, the Federal Government received N87.346 billion, the State Governments received N291.154 billion, and the Local Government Councils received N203.807 billion.
Furthermore, the Electronic Money Transfer Levy (EMTL) revenue of N18.818 billion saw the Federal Government receive N2.823 billion, the State Governments receive N9.409 billion, and the Local Government Councils receive N6.586 billion.
Examine the breakdown of the N581.710 billion Exchange Difference revenue, the Federal Government received N276.110 billion, the State Governments received N140.047 billion, and the Local Government Councils received N107.970 billion. Additionally, the benefiting states obtained N57.583 billion as derivation revenue.
As for the N13.647 billion Solid Mineral revenue, the Federal Government received N6.255 billion, the State Governments received N3.172 billion, and the Local Government Councils received N2.446 billion. Additionally, the benefiting states received N1.774 billion as derivation revenue.
The detailed report also revealed changes in various revenue streams. Oil and Gas Royalty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import Duty, Electronic Money Transfer Levy (EMTL), and CET Levies experienced significant increases, while Companies Income Tax (CIT) recorded a decrease and Excise Duties slightly increased.
Despite the revenue allocations, the balance in the Excess Crude Account (ECA) remained unchanged at $473,754.57.
This latest distribution of funds from the Federation Accounts Revenue is aimed at fostering development and promoting economic growth across the various tiers of government in Nigeria.
