In a significant financial update, the Federation Accounts Allocation Committee (FAAC) announced that a total sum of N1.143 trillion for May 2024 has been shared among the Federal Government, State Governments, and Local Government Councils in Nigeria. This disclosure was made through a communiqué issued at the conclusion of the FAAC’s latest meeting, as detailed in a statement by Bawa Mokwa, the Director of Press and Public Relations in the Office of the Accountant General of the Federation, on Monday.
The FAAC meeting for June 2024 was chaired by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. Mokwa’s statement revealed that the total distributable revenue of N1.143 trillion was composed of various revenue streams: distributable statutory revenue of N157.183 billion, Value Added Tax (VAT) revenue of N463.425 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.146 billion, and Exchange Difference revenue amounting to N507.456 billion.
The communiqué highlighted that the total revenue available in May 2024 was N2.324 trillion. From this, N76.647 billion was deducted for the cost of collection, while total transfers, interventions, and refunds amounted to N1.104 trillion. The gross statutory revenue for May 2024 was reported at N1.223 trillion, which was slightly lower by N9.604 billion compared to the N1.233 trillion received in April 2024.
Further breaking down the figures, the statement noted that VAT revenue for May 2024 was N497.665 billion, showing a slight decrease of N3.255 billion from the N500.920 billion recorded in April 2024. The detailed distribution from the N1.143 trillion total distributable revenue indicated that the Federal Government received N365.813 billion, State Governments received N388.419 billion, and Local Government Councils received N282.476 billion. Additionally, N106.502 billion, representing 13% of mineral revenue, was allocated to the benefiting States as derivation revenue.
Specifically, from the N157.183 billion distributable statutory revenue, the Federal Government received N61.010 billion, State Governments received N30.945 billion, and Local Government Councils received N23.857 billion. An additional N41.371 billion (13% of mineral revenue) was distributed to the States benefiting from derivation.
In terms of VAT revenue distribution of N463.425 billion, the Federal Government’s share was N69.514 billion, State Governments received N231.713 billion, and Local Government Councils were allocated N162.199 billion. From the N15.146 billion Electronic Money Transfer Levy (EMTL), the Federal Government received N2.272 billion, State Governments received N7.573 billion, and Local Government Councils got N5.301 billion.
The communiqué also detailed the distribution of the N507.456 billion Exchange Difference revenue: the Federal Government received N233.017 billion, State Governments were allocated N118.189 billion, and Local Government Councils received N91.119 billion. Furthermore, N65.131 billion, representing 13% of mineral revenue, was distributed to the States benefiting from this revenue.
The statement concluded with insights into the revenue performance for May 2024. It was noted that Companies Income Tax (CIT) and Petroleum Profit Tax (PPT) saw significant increases, whereas revenues from Import and Excise Duties, Royalty on Crude Oil and Gas, EMTL, CET Levies, and VAT experienced considerable decreases. The balance in the Excess Crude Account (ECA) stood at $473,754.57, reflecting the country’s reserve status.
This detailed financial update underscores the complexities and variances in Nigeria’s revenue streams, highlighting both the gains and challenges within the country’s fiscal management. The allocation of these funds is crucial for the functioning of federal, state, and local governments, impacting various sectors and public services across Nigeria.
