The Federation Account Allocation Committee (FAAC) announced that the federal, state, and local governments shared a total of N1.358 trillion in revenue for July 2024. This marks a slight increase of N4 billion compared to the N1.354 trillion distributed in June.
The FAAC's August meeting, chaired by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, revealed the allocation figures. According to Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance, the N1.358 trillion was drawn from the total revenue of N2.61 trillion generated in July.
The revenue breakdown includes statutory revenue of N161.5 billion, value-added tax (VAT) of N528 billion, an electronic money transfer levy (EMTL) of N18.8 billion, exchange difference of N581 billion, and N13.6 billion from solid minerals. These contributions made up the distributable revenue for the month.
From the distributable funds, the federal government received N431 billion, while the states and local government councils were allocated N473 billion and N343 billion, respectively. Additionally, oil-producing states received N109 billion as a derivation fund, representing 13% of mineral revenue.
The committee also allocated N99.7 billion for the cost of revenue collection and N109.816 billion for transfer intervention and refunds.
The gross revenue from VAT for July amounted to N625 billion, an increase of N62 billion from the previous month. Out of the distributable VAT revenue of N582 billion, the federal government received N87.3 billion, the states got N291 billion, and local governments were allocated N203 billion.
The FAAC statement noted that the gross statutory revenue of N1.373 trillion for July was lower by N45.5 billion compared to June's N1.432 trillion. Of this amount, N73.959 billion was allocated for collection costs, and N1.138 trillion was earmarked for transfers, interventions, and refunds.
Regarding the N161 billion gross statutory revenue balance, the federal government received N58.5 billion, the states received N29.6 billion, and local governments got N22.894 billion. Additionally, N50.4 billion was allocated as 13% derivation revenue to oil-producing states.
From the N19.6 billion generated by the EMTL, the federal government received N2.8 billion, the states got N9.4 billion, and local governments received N6.5 billion, with N0.784 billion set aside for collection costs.
FAAC reported significant increases in oil and gas royalties, petroleum profit tax (PPT), VAT, import duties, EMTL, and external tariff levies (CET). However, there was a decrease in company income tax (CIT), while excise duties saw only a marginal increase.
As of August 2024, the balance in the Excess Crude Account (ECA) was $473,754.57.
