Federal, State, Local Gov’ts Share N1.143trn May Revenue

A total sum of N1.143 trillion from May 2024 federation accounts revenue has been distributed among the three tiers of government – federal, state, and local governments.

The revenue was allocated during the June 2024 meeting of the Federation Accounts Allocation Committee (FAAC), chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

A communiqué issued by FAAC revealed that the N1.143 trillion total distributable revenue comprised N157.183 billion in distributable statutory revenue, N463.425 billion from Value Added Tax (VAT) revenue, N15.146 billion from electronic money transfer levy revenue, and N507.456 billion from Exchange Difference revenue.

Total revenue of N2.324 trillion was available in May 2024. Total deductions for the cost of collection were N76.647 billion, while total transfers, interventions, and refunds amounted to N1.104 trillion.

Gross statutory revenue of N1.223 trillion was received for May 2024, which was N9.604 billion lower than the N1.233 trillion received in April 2024.

The gross revenue from VAT in May 2024 was N497.665 billion, which was N3.255 billion lower than the N500.920 billion available in April 2024.

The communiqué confirmed that from the N1.143 trillion total distributable revenue, the Federal Government received N365.813 billion, the State Governments received N388.419 billion, and the 774 Local Government Councils received N282.476 billion.

A total sum of N106.502 billion (13% of mineral revenue) was shared among the benefiting States as derivation revenue.

Regarding the N157.183 billion distributable statutory revenue, the communiqué stated that the Federal Government received N61.010 billion, the State Governments received N30.945 billion, and the Local Government Councils received N23.857 billion. The sum of N41.371 billion (13% of mineral revenue) was allocated to the benefiting States as derivation revenue.

From the N463.425 billion distributable VAT revenue, the federal government received N69.514 billion, the State Governments received N231.713 billion, and the LGAs received N162.199 billion.

A total sum of N2.272 billion was received by the federal government from the N15.146 billion EMTL. The states received N7.573 billion, and the local governments received N5.301 billion.

From the N507.456 billion exchange difference revenue, the federal government received N233.017 billion, the state governments received N118.189 billion, and the LGAs received N91.119 billion. A total sum of N65.131 billion (13% of mineral revenue) was shared among the benefiting States as derivation revenue.

According to the communiqué, in May 2024, companies tax and petroleum tax saw significant increases, while Import and excise duties, royalty crude and gas, EMTL, CET levies, and VAT recorded considerable decreases.

The balance in the Excess Crude Account (ECA) was $473,754.57.