In its June 2024 meeting, the Federation Accounts Allocation Committee (FAAC) allocated N1.143 trillion among the Federal Government, States, and Local Government Councils. The meeting was chaired by Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
According to FAAC’s communiqué, the total distributable revenue consisted of N157.183 billion from statutory revenue, N463.425 billion from Value Added Tax (VAT), N15.146 billion from the Electronic Money Transfer Levy (EMTL), and N507.456 billion from Exchange Rate Difference.
For May 2024, the total revenue available was N2.324 trillion. After deductions for collection costs amounting to N76.647 billion and transfers, interventions, and refunds totaling N1.104 trillion, the gross statutory revenue stood at N1.223 trillion, a slight decrease of N9.604 billion from April 2024’s N1.233 trillion. VAT revenue for May was N497.665 billion, down by N3.255 billion from April 2024’s N500.920 billion.
From the total distributable revenue of N1.143 trillion, the Federal Government received N365.813 billion, State Governments N388.419 billion, and Local Government Councils N282.476 billion. Additionally, States benefiting from mineral derivation received N106.502 billion.
Breaking down the N157.183 billion statutory revenue, the Federal Government was allocated N61.010 billion, State Governments N30.945 billion, and Local Government Councils N23.857 billion. Benefiting States received an extra N41.371 billion in derivation revenue.
Of the N463.425 billion VAT revenue, the Federal Government got N69.514 billion, State Governments N231.713 billion, and Local Government Councils N162.199 billion. From the N15.146 billion EMTL, the Federal Government received N2.272 billion, State Governments N7.573 billion, and Local Government Councils N5.301 billion.
The N507.456 billion from Exchange Rate Difference was divided with the Federal Government receiving N233.017 billion, State Governments N118.189 billion, and Local Government Councils N91.119 billion. Benefiting States were also allocated N65.131 billion from mineral derivation revenue.
The communiqué noted significant changes in revenue components: there were 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 saw decreases.
As of May 2024, the balance in the Excess Crude Account (ECA) was $473,754.57.
Minister Edun emphasized the Federal Government’s dedication to ensuring an equitable and transparent revenue distribution, aiming to support economic growth and development across all government tiers.
