Tayo Busayo, Abuja
DAILY COURIER - In its July 2024 meeting, the Federation Account Allocation Committee (FAAC), chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, distributed N1.354 trillion to the federal, state, and local governments as Federation Allocation for June 2024. This amount was drawn from a gross total of N2.483 trillion.
The allocation included Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED), and an Augmentation of N200 billion. The Federal Government received N459.776 billion, the states received N461.979 billion, local government councils got N337.019 billion, and oil-producing states received N95.598 billion as Derivation (13% of Mineral Revenue).
An additional N92.112 billion was allocated for the cost of collection, while N1.037 trillion was earmarked for Transfers, Intervention, and Refunds.
The committee's communique highlighted an increase in Gross Revenue from VAT, rising to N562.685 billion in June 2024, up from N497.665 billion the previous month. Of this amount, N22.507 billion went towards the cost of collection and N16.205 billion for Transfers, Intervention, and Refunds, leaving N523.973 billion for distribution: the Federal Government received N78.596 billion, the states got N261.987 billion, and local government councils received N183.391 billion.
The Gross Statutory Revenue for June 2024 amounted to N1.232 trillion. After deducting N68.951 billion for the cost of collection and N1.021 trillion for Transfers, Intervention, and Refunds, N142.514 billion was distributed: N48.952 billion to the Federal Government, N24.829 billion to the states, N19.142 billion to local government councils, and N49.591 billion to oil-producing states as Derivation Revenue.
The distribution also included N16.346 billion from the Electronic Money Transfer Levy (EMTL): the Federal Government received N2.354 billion, the states got N7.846 billion, and local government councils received N5.492 billion, with N0.654 billion allocated for the cost of collection.
Exchange Difference revenue of N472.192 billion was shared as follows: N224.514 billion to the Federal Government, N113.877 billion to the states, N87.794 billion to local government councils, and N46.007 billion to oil-producing states as Derivation.
Additionally, a N200 billion augmentation was distributed, with N105.360 billion to the Federal Government, N53.440 billion to the states, and N41.200 billion to local government councils.
The communique noted significant increases in Companies Income Tax (CIT) and VAT, with marginal increases in Import and Excise Duties and EMTL. However, there were considerable decreases in Petroleum Profit Tax (PPT), Royalty Crude, Rentals, and Customs External Tariff levies (CET).
The total distributable revenue for June 2024 amounted to N1.354 trillion, comprising N142.514 billion from Statutory Revenue, N523.973 billion from VAT, N15.692 billion from EMTL, N472.192 billion from Exchange Difference, and a N200 billion augmentation.
As of July 2024, the balance in the Excess Crude Account (ECA) stands at $473,754.57.