The Federal government has distributed N1.354 trillion in federation accounts revenue for June 2024 among the three tiers of government, marking the first such allocation since the Supreme Court granted financial autonomy to local governments.
The Federation Accounts Allocation Committee (FAAC) announced the revenue sharing at its July 2024 meeting in Abuja, chaired by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
According to a communiqué issued by FAAC and signed by Bawa Mokwa, a spokesperson for the Accountant General of the Federation, the distributed funds comprised various revenue sources:
“The N1,354.371 trillion total distributable revenue consisted of N142.514 billion in statutory revenue, N523.973 billion in Value Added Tax (VAT), N15.692 billion from Electronic Money Transfer Levy (EMTL), N472.192 billion in Exchange Difference revenue, and N200 billion in augmentation,” Mokwa stated.
The total available revenue for June 2024 stood at N2,483.890 billion, with N92.112 billion deducted for collection costs and N1,037.407 billion allocated for transfers, interventions, and refunds.
The communiqué revealed a significant increase in gross statutory revenue, rising from N1,223.894 billion in May 2024 to N1,432.667 billion in June 2024. Similarly, VAT revenue saw a boost, climbing from N497.665 billion to N562.685 billion over the same period.
Breaking down the allocation, the Federal Government received N459.776 billion, while state governments and local government councils were awarded N461.979 billion and N337.019 billion, respectively. Additionally, N95.598 billion was shared among mineral-producing states as derivation revenue.
The distribution of specific revenue streams was detailed as follows:
From the N142.514 billion statutory revenue, the Federal Government received N48.952 billion, state governments N24.829 billion, and local government councils N19.142 billion.
VAT revenue of N523.973 billion was split with N78.596 billion going to the Federal Government, N261.987 billion to state governments, and N183.391 billion to local government councils.
The N15.692 billion EMTL revenue saw N2.354 billion allocated to the Federal Government, N7.846 billion to state governments, and N5.492 billion to local government councils.
Exchange Difference revenue of N472.192 billion was distributed with N224.514 billion to the Federal Government, N113.877 billion to state governments, and N87.794 billion to local government councils.
The N200 billion augmentation was shared with N105.360 billion going to the Federal Government, N53.440 billion to state governments, and N41.200 billion to local government councils.
The communiqué also noted fluctuations in various revenue sources:
“In June 2024, Companies’ Income Tax Oil (CIT) and Value Added Tax (VAT) increased significantly while Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased marginally. Royalty Crude, Petroleum Profit Tax (PPT), Rentals, and CET Levies recorded considerable decreases,” the statement read.
As of the meeting date, the balance in Nigeria’s Excess Crude Account stood at $473,754.57.
