N1.358tr July 2024 Revenue Shared Among FG, States, and LGAs
By Patience Ikpeme
In its August 2024 meeting, the Federation Accounts Allocation Committee (FAAC) announced the distribution of N1.358 trillion revenue among the Federal Government, State Governments, and Local Government Councils. The revenue, generated in July 2024, marks a significant financial allocation aimed at addressing the fiscal needs of various government tiers across the country.
According to the communiqué released at the end of the FAAC meeting held in Abuja, the Federal Government received a total of N431.079 billion, while State Governments were allocated N473.477 billion. Local Government Councils received N343.703 billion, and oil-producing states were allocated N109.816 billion as derivation revenue, reflecting 13% of the mineral revenue generated.
**Breakdown of Revenue Distribution**
The total distributable revenue of N1.358 trillion was derived from several sources: Distributable Statutory Revenue, N161.593 billion; Distributable Value Added Tax (VAT) Revenue, N582.307 billion; Electronic Money Transfer Levy (EMTL) Revenue, N18.818 billion; Exchange Difference Revenue, N581.710 billion and Solid Mineral Revenue, N13.647 billion.
The communiqué disclosed that the total revenue available in July 2024 was N2.613 trillion. From this amount, N99.756 billion was deducted for the cost of collection, while N1.155 trillion was set aside for transfers, interventions, and refunds.
The gross statutory revenue for July 2024 amounted to N1.387 trillion, which represents a decrease of N45.517 billion from the N1.432 trillion received in June 2024. In contrast, revenue from VAT in July 2024 totaled N625.329 billion, reflecting an increase of N62.644 billion compared to N562.685 billion in June 2024.
From the N161.593 billion distributable statutory revenue, the Federal Government received N58.545 billion, State Governments received N29.695 billion, and Local Government Councils received N22.894 billion. An additional N50.459 billion, representing 13% of mineral revenue, was distributed to oil-producing states as derivation revenue.
The N582.307 billion distributable VAT revenue was shared as follows: the Federal Government received N87.346 billion, State Governments received N291.154 billion, and Local Government Councils were allocated N203.807 billion.
From the N18.818 billion generated by EMTL, the Federal Government received N2.823 billion, State Governments received N9.409 billion, and Local Government Councils received N6.586 billion.
The N581.710 billion from exchange differences was distributed with the Federal Government receiving N276.110 billion, State Governments receiving N140.047 billion, and Local Government Councils receiving N107.970 billion. Additionally, N57.583 billion, or 13% of mineral revenue, was shared with oil-producing states.
Of the N13.647 billion generated from solid minerals, the Federal Government received N6.255 billion, State Governments received N3.172 billion, and Local Government Councils received N2.446 billion. A sum of N1.774 billion, representing 13% of mineral revenue, was allocated to the oil-producing states as derivation revenue.
The communiqué highlighted notable increases in revenues from Oil and Gas Royalty, Petroleum Profit Tax (PPT), VAT, Import Duty, EMTL, and Common External Tariff (CET) Levies. However, it also reported a decrease in revenue from Companies Income Tax (CIT), while Excise Duties recorded only a marginal increase.
Despite these variations in revenue streams, the balance in the Excess Crude Account (ECA) remained unchanged at $473,754.57.
