The Federation Account Allocation Committee (FAAC) has recently disclosed the distribution of N1.208 trillion to different government tiers for the month of May 2024.
This allocation, derived from several revenue streams such as statutory allocations, Value Added Tax (VAT), and Electronic Money Transfer Levies (EMTL), originates from the revenues collected in April 2024.
This latest disbursement marks an approximate 8% increase from the N1.123 trillion allocated in the previous month, signaling a modest but notable rise in government revenue flows.
According to a statement from the Office of the Accountant General signed by its Director (Press and Public Relations), Bawa Mokwa, the figure was disclosed in a communiqué issued by FAAC after the May 2024 meeting.
The N1.208 trillion total distributable revenue consisted of N284.716 billion distributable statutory revenue, N466.457 billion distributable Value Added Tax (VAT) revenue, N18.024 billion Electronic Money Transfer Levy (EMTL) revenue, and N438.884 billion Exchange Difference revenue.
About 55% of revenue made was shared among three tiers of government
The total revenue available for April 2024 was N2.192 trillion. After deducting N80.517 billion for the cost of collection and N903.479 billion for transfers, interventions, and refunds, the remaining amount was distributed among the three tiers of government. Approximately 55% of revenue made in April was shared among the three tiers of government by May 2024.
- From the N1.208 trillion total distributable revenue, the Federal Government received N390.412 billion, the state governments received N403.403 billion, and the local government councils received N293.816 billion.
- Additionally, N120.450 billion (13% of mineral revenue) was allocated to the oil-producing states as derivation revenue.
Revenue Details and Distribution
- The gross statutory revenue for April 2024 was N1.233 trillion, an increase of N216.282 billion compared to the N1.017 trillion received in March 2024
- However, the gross revenue from VAT decreased to N500.920 billion in April 2024, down by N48.778 billion from March 2024’s N549.698 billion. The Federal Government received N69.969 billion, the state governments received N233.229 billion, and the local government councils received N163.260 billion from the N466.457 billion distributable VAT revenue.
- For the N284.716 billion distributable statutory revenue, the Federal Government received N112.148 billion, the state governments received N56.883 billion, and the local government councils were given N43.855 billion. From this, N71.830 billion (13% of mineral revenue) was shared among the oil-producing states as derivation revenue.
- The N18.024 billion EMTL was allocated with N2.704 billion to the Federal Government, N9.012 billion to the state governments, and N6.308 billion to the local government councils.
- From the N438.884 billion Exchange Difference revenue, the Federal Government received N205.591 billion, the state governments received N104.279 billion, and the local government councils received N80.394 billion. An additional N48.620 billion (13% of mineral revenue) was allocated to the oil-producing states.
The communiqué highlighted significant increases in oil and gas royalties, companies income tax (CIT), excise duty, petroleum profit tax (PPT), electronic money transfer Levy (EMTL), and CET Levies for April 2024. Conversely, import duty and VAT recorded notable decreases.
The Excess Crude Account (ECA) balance stood at $473,754.57 as of the end of April 2024.
