The Federation Account Allocation Committee (FAAC) has announced the sharing of a total sum of N1.36 trillion to the three tiers of government as Federation Allocation for the month of July 2024. This was revealed at the August 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
According to the Finance Ministry’s Director of Information and Public Relations, Mohammed Manga, the Federal Government received its share of N431.1 billion, the States received N473.5 billion, while the Local Government Councils got N343.7 billion. Additionally, the Oil Producing States received N109.8 billion as Derivation (13% of Mineral Revenue).
The committee attributed the increase in revenue to significant growth in Oil and Gas Royalty, Petroleum Profit Tax, Value Added Tax, Import Duty, Electronic Money Transfer Levy, and External Tariff levies. However, Companies Income Tax recorded a decrease, while Excise Duties increased marginally.
Minister Wale Edun commended the committee for their support, especially during the recent protest, and urged them to continue supporting the Federal Government’s efforts to transform Nigeria’s economy. He also praised President Tinubu for signing the National Minimum Wage Act into law, stating that “its implementation will be of immense benefit to all Nigerians.”
The total revenue distributable for the month of July 2024 was N1.358 trillion, drawn from various sources, including:
– Statutory Revenue of N161.59 billion
– Value Added Tax of N582.31 billion
– Electronic Money Transfer Levy of N19.6 billion
– Exchange Difference of N581.71 billion
– Solid Mineral Revenue of N13.65 billion
The balance in the Excess Crude Account as of August 2024 stands at $473,754.57.
The FAAC meeting also highlighted the Gross Revenue available from Value Added Tax for the month of July 2024, which was N625.33 billion, an increase of N62.64 billion from the previous month. The Federal Government received N87.37 billion, the States received N291.15 billion, and Local Government Councils got N203.81 billion from the VAT revenue.
Furthermore, the Gross Statutory Revenue of N1.37 trillion received for the month was lower than the previous month by N45.52 billion. The Federal Government got N58.55 billion, States received N29.69 billion, Local Government Councils received N22.89 billion, and Derivation Revenue (13% Mineral producing States) got N50.46 billion from the Statutory Revenue.