FG, States and LGs gets N1.143tr FAAC Allocation
By Patience Ikpeme
The Federation Account Allocation Committee (FAAC), shared a total sum of N1,143.210 Trillion to the three tiers of government as Federation Allocation for the month of June, 2024 from a gross total of revenue of N2.324 trillion recorded in May.
This was disclosed at the FAAC meeting of June 2024 chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Monday in Abuja .
In a communique issued by FAAC, the total distributable revenue comprised N157.183 billion from statutory revenue, N463.425 billion from Value Added Tax (VAT), N15.146 billion from Electronic Money Transfer Levy (EMTL), and N507.456 billion from Exchange Rate Difference.
Deductions for collection costs came up to N76.647 billion, while transfers, interventions, and refunds totaled N1.104 trillion.
There was a decrease in the gross statutory revenue for May which stood at N1.223 trillion, from the N1.233 trillion received in April 2024 by N9.604 billion. Also, VAT revenue for May was N497.665 billion, slightly lower than the N500.920 billion recorded in April 2024 by N3.255 billion.
Federal Government received N365.813 billion, the State Governments N388.419 billion, and the Local Government Councils N282.476 billion. Benefiting States also received N106.502 billion as 13 percent of mineral derivation revenue from the total distributable revenue of N1.143 trillion .
From the N157.183 billion distributable statutory revenue, the Federal Government received N61.010 billion, the State Governments N30.945 billion, and the Local Government Councils N23.857 billion. An additional N41.371 billion was allocated to the benefiting States as derivation revenue.
With regards to the N463.425 billion VAT revenue, the Federal Government received N69.514 billion, the State Governments N231.713 billion, and the Local Government Councils N162.199 billion. The N15.146 billion from EMTL was distributed with the Federal Government receiving N2.272 billion, the State Governments N7.573 billion, and the Local Government Councils N5.301 billion.
The N507.456 billion Exchange Rate Difference revenue was shared with the Federal Government receiving N233.017 billion, the State Governments N118.189 billion, and the Local Government Councils N91.119 billion. Additionally, N65.131 billion (13 percent mineral derivation revenue) was allocated to the benefiting States.
Noticeable changes were recorded in the revenue components. There were significant increases in Companies Income Tax (CIT) and Petroleum Profit Tax (PPT), while Import and Excise Duties, Royalty on Crude and Gas, EMTL, CET Levies, and VAT recorded decreases.
Minister of Finance Wale Edun noted the federal government’s commitment to ensuring equitable and transparent distribution of revenue, aiming to support economic growth and development across all tiers of government.
The balance in the Excess Crude Account (ECA) stood at $473,754.57 as of May 2024.
