FG, States, LGCs Share N1.203tr August 2024 Revenue
By Patience Ikpeme
The Federal Government, State Governments, and Local Government Councils across Nigeria have shared a total of N1.203 trillion as revenue generated for August 2024.
The announcement was made following the September 2024 meeting of the Federation Accounts Allocation Committee (FAAC) held in Abuja, according to a communiqué released by the Office of the Accountant General of the Federation.
The total distributable revenue of N1.203 trillion was comprised of several key revenue streams, including distributable statutory revenue of N186.636 billion, Value Added Tax (VAT) revenue of N533.895 billion, Electronic Money Transfer Levy (EMTL) of N15.017 billion, and Exchange Difference revenue of N468.245 billion.
The communiqué also indicated that the gross revenue available for the month of August 2024 was N2.278 trillion. This figure was subjected to deductions, with N81.975 billion allocated for the cost of collection and N992.617 billion allocated for transfers, interventions, and refunds.
The gross statutory revenue for August 2024 amounted to N1.221 trillion, reflecting a decrease of N165.994 billion compared to the N1.387 trillion generated in July 2024. Similarly, gross revenue from VAT amounted to N573.341 billion, which is lower than the N625.329 billion recorded in July 2024 by N51.988 billion.
Out of the total distributable revenue of N1.203 trillion, the Federal Government received N374.925 billion, the State Governments received N422.861 billion, and Local Government Councils received N306.533 billion. In addition, N99.474 billion, representing 13% of mineral revenue, was distributed to the oil-producing states as derivation revenue.
The N186.636 billion distributable statutory revenue was allocated with the Federal Government receiving N71.624 billion, the State Governments receiving N36.329 billion, and the Local Government Councils receiving N28.008 billion. Oil-producing states received N50.675 billion as derivation revenue.
From the N533.895 billion distributable VAT revenue, the Federal Government received N80.084 billion, the State Governments received N266.948 billion, and the Local Government Councils received N186.863 billion.
The Electronic Money Transfer Levy (EMTL) generated N15.017 billion, from which the Federal Government received N2.252 billion, the State Governments received N7.509 billion, and the Local Government Councils received N5.256 billion.
In addition, the Exchange Difference revenue of N468.245 billion was distributed as follows: the Federal Government received N220.964 billion, the State Governments received N112.076 billion, the Local Government Councils received N86.406 billion, while N48.799 billion was allocated to oil-producing states as 13% derivation revenue.
The communiqué noted that there were declines in revenue from key sources such as Oil and Gas Royalty, Petroleum Profit Tax (PPT), VAT, Import and Excise Duties, EMTL, CET Levies, and Companies Income Tax (CIT) for the month of August 2024. These reductions contributed to the lower total distributable revenue compared to July 2024.
The balance in the Excess Crude Account (ECA) stood at $473,754.57 as of August 2024, a minimal reserve that reflects ongoing economic pressures on Nigeria’s revenue streams.
The FAAC meeting underscores the government’s ongoing efforts to manage fiscal distributions amid a challenging economic environment, with the focus on meeting the financial needs of all tiers of government. The decreases in key revenue sources, however, highlight the need for continued reforms and diversification to ensure sustainable revenue generation.