The Federal Government, states, and local government councils throughout Nigeria received N1.2 trillion in revenue produced in August 2024 from the Federation Accounts Allocation Committee (FAAC). Comparing this amount to the N1.358 trillion divided from revenue in July 2024, there has been an 11.4% drop.
The Office of the Accountant-General of the Federation’s Director of Press and Public Relations, Bawa Mokwa, reported that the revenue allocation was declared at the September 2024 FAAC meeting in Abuja.
Value Added Tax (VAT) income of N533.895 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.017 billion, Exchange Difference revenue of N468.245 billion, and Distributable Statutory revenue of N186.636 billion made up the total distributable revenue of N1.203 trillion.
According to a review of the FAAC communiqué, in August 2024, N2.278 trillion will be available for revenue. Bawa added that the federal government received a total of N374.93 billion from the N1.203 trillion distributable revenue, while state governments received N422.86 billion.
A total of N1.203 trillion in revenue earned in August 2024 and distributed in September 2024 was divided by the federal government, states, and local government councils. This is an 11.4% decrease from the N1.358 trillion split from revenue in July, which was distributed in August.
The FAAC communiqué states that overall revenue was N2.278 trillion as of August 2024. Nonetheless, deductions were imposed for other responsibilities and collecting charges. Collection costs totaled N81.975 billion, while N992.617 billion was set aside for transfers, interventions, and refunds.
As a result, in September 2024, the Federal Government, the states, and local government councils received N1.203 trillion. August’s total distributable revenue was made up of a few important parts.
The statutory revenue grew by 15.5% to N186.636 billion from N161.593 billion in July. But from N582.307 billion in July to N533.895 billion in August, VAT revenue decreased by 8.3%. In the same vein, EMTL revenue decreased by 20.2% from N18.818 billion in July to N15.017 billion in August.
Exchange Difference revenue, which was down 19.5% from N581.710 billion in July to N468.245 billion in August, was one of the worst drops, BrandSpur business and economy news reports.
The Federal Government’s revenue for August was N374.925 billion, which is 13% less than the N431.079 billion it collected in July. States were given N422.861 billion, which is 10.7% less than they shared in the previous month (N473.477 billion). The amount given to local government councils decreased by 11%, from N343.703 billion in July to N306.533 billion.
Continuing states that produce minerals received N99.474 billion in August as 13% of their derivation earnings, a 9.4% decrease from the N109.816 billion given out in July. The federal government received N71.624 billion, the states received N36.329 billion, and local government councils received N28.008 billion of the N186.636 billion distributable statutory revenue. The remaining N50.675 billion, or 13% of the earnings from mineral derivation, was divided. The federal government received N80.084 billion, the states received N266.948 billion, and local government councils received N186.863 billion of the N533.895 billion in VAT revenue.
In the meantime, N2.252 billion, N7.509 billion, and N5.256 billion of the N15.017 billion in EMTL revenue went to the federal government, the states, and local government councils.
The communiqué further revealed that the states received N112.076 billion and local government councils received N86.406 billion from the N468.245 billion Exchange Difference revenue. The Federal Government received N220.964 billion from this amount. The remaining N48.799 billion was distributed as a 13% revenue share from mineral derivation.
However, the study also stated that decreases in oil and gas royalties, VAT, import and excise taxes, Petroleum Profit Tax (PPT), EMTL, CET levies, and Companies Income Tax (CIT) were observed in August 2024. At the end of the month, the Excess Crude Account (ECA) had $473,754.57 in balance.
