The Federation Account Allocation Committee (FAAC) has announced the distribution of N1.35 trillion to the three tiers of government for June. This distribution comes from the total revenue of N2.48 trillion generated by various agencies, marking an increase of N150 million compared to the N1.2 trillion shared in May.
According to a statement by Mohammed Manga, Director of Information and Public Relations for the Finance Ministry, the Federal Government received N459.776 billion, states were allocated N461.979 billion, and Local Government Councils (LGCs) got N337.019 billion. However, Manga did not specify if LGCs administered by caretaker committees received their allocations as per the recent Supreme Court directive.
Last week, the Supreme Court ordered the Federal Government to begin direct payments to LGCs’ exclusive accounts, ensuring that no state government receives funds intended for local governments.
The statement read: “The Federation Account Allocation Committee, at its July 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total of N1.35 trillion from a gross total of N2.48 trillion. This amount includes Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy, Exchange Difference, and an augmentation of N200 billion.”
Out of the distributed funds, the Oil Producing States received N95.598 billion as derivation, which is 13 percent of mineral revenue. Additionally, N92.11 billion was allocated for the cost of collection, and N1.037 billion was designated for transfer intervention and refunds.
The committee’s communiqué indicated that the gross revenue from VAT for June 2024 was N562.685 billion, an increase from the N497.66 billion distributed in the previous month. From this, N22.507 billion was allocated for the cost of collection, and N16.205 billion was designated for transfers, interventions, and refunds. The remaining N523.973 billion was distributed among the Federal Government (N78.596 billion), states (N261.987 billion), and LGCs (N183.39 billion).
The gross statutory revenue for June was N1.24 trillion. From this, N68.95 billion was allocated for the cost of collection, and N1.02 trillion was set aside for transfers, interventions, and refunds. The remaining N142.514 billion was distributed as follows: the Federal Government received N48.95 billion, states received N24.83 billion, LGCs got N19.14 billion, and N49.59 billion was given as derivation revenue.
Furthermore, N16.35 billion from the Electronic Money Transfer Levy was distributed, with the Federal Government receiving N2.354 billion, states getting N7.85 billion, and LGCs receiving N5.49 billion. An additional N0.654 billion was allocated for the cost of collection.
The communiqué also disclosed N472.19 billion from Exchange Difference, distributed as follows: the Federal Government received N224.51 billion, states got N113.88 billion, LGCs received N87.79 billion, and N46.01 billion was allocated as derivation revenue.
An augmentation of N200 billion was also shared, with the Federal Government receiving N105.4 billion, states getting N53.44 billion, and LGCs allocated N41.200 billion.
Overall, Companies’ Income Tax and VAT significantly increased, while Import and Excise Duties and Electronic Money Transfer Levies increased marginally. In contrast, Petroleum Profit, Royalty Crude, Rentals, and Customs External Tariff levies decreased considerably. The total distributable revenue for June 2024 amounted to N1.36 trillion.
