The Federation Accounts Allocation Committee (FAAC) reported that in June, a total of N1.354 trillion was distributed among the federal, state, and local governments. This announcement was made by Bawa Mokwa, spokesperson for the Office of the Accountant-General of the Federation, following FAAC’s meeting chaired by Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The distributable revenue of N1.354 trillion was sourced from various channels: N142.514 billion from statutory allocations, N523.973 billion from Value Added Tax (VAT), N15.692 billion from Electronic Money Transfer Levy (EMTL), N472.192 billion from exchange difference revenue, and an augmentation of N200.000 billion.
Initially, the total revenue available for June 2024 was N2.484 trillion. After subtracting N92.112 billion for collection expenses and making transfers, interventions, and refunds totaling N1.037 trillion, the net distributable revenue of N1.354 trillion was determined.
According to the communiqué, the federal government received N459.776 billion, state governments received N461.979 billion, and local government councils received N337.019 billion. Additionally, N95.598 billion was allocated as derivation revenue for the states benefiting from mineral resources, constituting 13% of mineral revenue.
Breaking down the allocations further, the federal government’s share included N48.952 billion from statutory allocations, N78.596 billion from VAT revenue, N2.354 billion from EMTL revenue, N224.514 billion from exchange difference revenue, and N105.360 billion from the augmentation fund.
Comparing revenue performance with the previous month, the communiqué noted significant increases in Companies Income Tax Oil (CIT) and VAT revenues, alongside slight increases in import and excise duties and EMTL. However, there were noticeable decreases in Royalty Crude, Petroleum Profit Tax (PPT), rentals, and CET levies.
In addition to financial updates, the communiqué highlighted that the balance in the Excess Crude Account (ECA) stood at $473,754.57. This underscored ongoing efforts in fiscal management and strategic financial planning at the federal level.
The FAAC meeting outcomes reflect the intricate financial dynamics influencing government revenue distribution, emphasizing transparency and accountability in resource allocation across Nigeria’s three tiers of government.
