The Federation Account Allocation Committee (FAAC), at its September 2024 meeting chaired by the minister of finance and coordinating minister of the economy, Wale Edun, allocated a total of N1.203 trillion to the three tiers of government as the Federation Allocation for August 2024. This amount was drawn from a gross total of N2.278 trillion.
From the total allocation, which includes Gross Statutory Revenue, Value Added Tax (VAT), electronic money transfer levy, and exchange difference, the federal government received N374.925 billion, the states received N422.861 billion, local government areas got N306.533 billion, while the oil-producing states received N99.474 billion as derivation (13% of mineral revenue).
A sum of N81.975 billion was set aside for the cost of collection, while N992.617 billion was earmarked for transfers, interventions, and refunds.
According to the communique issued by FAAC after the meeting, the gross revenue from VAT for August 2024 was N573.341 billion, a decrease of N51.988 billion from the N625.329 billion distributed in July.
From this amount, N22.934 billion was allocated for the cost of collection, and N16.512 billion was assigned for transfers, interventions, and refunds. The remaining N533.895 billion was shared among the three tiers of government, with the Federal Government receiving N80.084 billion, the states receiving N266.948 billion, and Local Government Councils getting N186.863 billion.
The gross statutory revenue for August was N1.221 trillion, lower by N165.994 billion compared to the N1.387 trillion received in July. From this amount, N58.415 billion was allocated for the cost of collection, and N976.105 billion for transfers, interventions, and refunds.
The balance of N186.636 billion was distributed as follows: the Federal Government received N71.624 billion, states received N36.329 billion, Local Government Councils were allocated N28.008 billion, and N50.675 billion went to derivation revenue (13% to mineral-producing states) the spokesman for the ministry of finance Mohammed Manga said in a statement.
Additionally, N15.643 billion from the money transfer levy was shared among the three tiers of government. The federal government received N2.252 billion, the states got N7.509 billion, and LGAs received N5.256 billion, with N0.626 billion allocated for the cost of collection.
The communique also revealed that N468.245 billion from exchange difference was distributed as follows: the Federal Government received N220.964 billion, states got N112.076 billion, LGAs were allocated N86.406 billion, and N48.799 billion was assigned to derivation (13% of mineral revenue).
It was further disclosed that Companies Income Tax (CIT), VAT, import and excise duties, EMTL, petroleum profit tax, oil and gas royalties, and Customs External Tariff (CET) levies all recorded decreases during the month.
For August 2024, the total distributable revenue was derived from statutory revenue of N186.636 billion, VAT of N533.636 billion, EMTL of N15.017 billion, and exchange difference of N468.245 billion, bringing the total to N1.203 trillion.
As of September 2024, the balance in the Excess Crude Account (ECA) stood at $473,754.57.
While welcoming FAAC members, the Honourable Minister of Finance, Wale Edun, thanked them for their continued support and contributions, urging them to keep up their efforts. He also commended the revenue-generating agencies for their hard work in ensuring that the three tiers of government continue to operate smoothly.
Edun assured that Nigeria is on the right track, noting that “we have a President whose actions are in line with the rule of law, and he is ensuring that the economic conditions the country is going through are aimed at repositioning the economy for the benefit and future of our nation.”
He emphasized that the current policies are for the nation’s benefit. “It is for our own good. We have to endure turbulent times before the economy stabilizes for the better,” he said.
He added that the challenges Nigeria is facing are not unique to the country but are also affecting other nations. “We must play our part and tighten our belts,” he concluded.