Record Allocation of N1.208tr Distributed by FAAC in May 2024
By Patience Ikpeme
In a remarkable financial development, the Federation Accounts Allocation Committee (FAAC) has disbursed a total of N1.208 trillion in revenue to the Federal Government, States, and Local Government Councils for the month of May 2024, derived from April’s revenue.
This marks an increase from the previous N1.017 trillion distributed in March 2024, signifying a positive trend in revenue generation.
The N1.208 trillion distributable revenue is composed of various revenue sources: distributable statutory revenue amounting to N284.716 billion, distributable Value Added Tax (VAT) revenue totaling N466.457 billion, Electronic Money Transfer Levy (EMTL) revenue standing at N18.024 billion, and exchange rate differential revenue of N438.884 billion.
Breaking down the revenue allocation process, it was revealed that the total available revenue for April 2024 was N2.192 trillion. However, after deductions for cost of collection (N80.517 billion) and transfers, interventions, and refunds (N903.479 billion), the amount distributable stood at N1.208 trillion.
Noteworthy changes in specific revenue categories were observed, with gross statutory revenue witnessing an increase of N216.282 billion from N1.017 trillion to N1.233 trillion, while Value Added Tax (VAT) registered a decrease of N48.778 billion from N549.698 billion to N500.920 billion.
Distribution among the tiers of government resulted in the Federal Government receiving N390.412 billion, State Governments receiving N403.403 billion, and Local Government Councils receiving N293.816 billion. Additionally, N120.450 billion (13% of mineral revenue) was shared among beneficiary states as 13 percent derivation revenue.
Further details on the distribution highlighted that from the N284.716 billion distributable statutory revenue, the Federal Government received N112.148 billion, State Governments received N56.883 billion, and Local Government Councils received N43.855 billion. Additionally, N71.830 billion (13% of mineral revenue) was allocated to the benefiting States as derivation revenue.
The breakdown of the N466.457 billion distributable Value Added Tax (VAT) revenue saw the Federal Government receive N69.969 billion, State Governments receive N233.229 billion, and Local Government Councils receive N163.260 billion.
Similarly, the N18.024 billion Electronic Money Transfer Levy (EMTL) revenue was shared, with the Federal Government receiving N2.704 billion, State Governments receiving N9.012 billion, and Local Government Councils receiving N6.308 billion.
Moreover, the N438.884 billion Exchange Difference revenue distribution saw the Federal Government receive N205.591 billion, State Governments receive N104.279 billion, and Local Government Councils receive N80.394 billion. Additionally, N48.620 billion (13% of mineral revenue) was distributed to the benefiting States as derivation revenue.
The FAAC communiqué highlighted significant increases in various revenue streams such as Oil and Gas Royalties, Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), Electronic Money Transfer Levy (EMTL), and CET Levies, while Import Duty and Value Added Tax (VAT) experienced noticeable decreases.
The balance in the Excess Crude Account (ECA) standing at $473,754.57 as of the end of April 2024, the financial landscape reflects a dynamic and evolving economic scenario in the country.
This latest distribution of substantial revenue by the FAAC underscores the importance of effective financial management and strategic allocation of resources for sustainable development across all levels of government in Nigeria.
