In a significant financial distribution for July 2024, the Federation Accounts Allocation Committee (FAAC) announced the allocation of a staggering N1.358 trillion to the Federal Government, States, and Local Government Councils throughout the nation.
This announcement came during FAAC’s meeting in August 2024, held in the bustling heart of Abuja, shining a light on the intricate fiscal networks that govern the economy.
The total distributable revenue of N1,358.075 trillion stems from various sources: N161.593 billion from statutory revenue, N582.307 billion from Value Added Tax (VAT), and N18.818 billion from the electronic money transfer levy. Additional figures reveal N581.710 billion derived from Exchange Differences and N13.647 billion from the vibrant sector of Solid Minerals, underlining the diverse streams feeding this financial reservoir.
According to the communiqué released by FAAC, an impressive total revenue of N2,613.791 billion was available for the month. After accounting for costs—N99.756 billion was deducted for collection—N1,155.960 billion of this sum was earmarked for vital transfers, interventions, and refunds, emphasizing the sustained commitment to addressing national needs.
However, not all numbers tell tales of growth. The gross statutory revenue for July 2024 stood at N1.387 trillion, reflecting a downturn of N45.517 billion from the N1.433 trillion received in June 2024. In contrast, VAT revenue showed a robust increase, with July soaring to N625.329 billion—an uplifting rise of N62.644 billion from June’s N562.685 billion.
Breaking down the revenue distribution reveals intriguing insights: from the statutory revenue, the Federal Government received N431.079 billion, states grasped N473.477 billion, while Local Government Areas reaped N343.703 billion. An additional N109.816 billion, or 13 percent of mineral revenue, found its way to the States as derivation revenue, showcasing the importance of resource management at all levels.
Delving into the specifics of the N161.593 billion in statutory revenue distribution, the federal government garnered N58.545 billion; states received N29.695 billion; and LGAs secured N22.894 billion, while a generous N50.459 billion was allocated to the benefiting states as a 13 percent derivation revenue.
The VAT revenue allocation revealed distinct advantages: the federal government took in N87.346 billion, state governments benefited from N291.154 billion, and LGAs acquired N203.807 billion. Furthermore, from the N18.818 billion generated from the money transfer levy, distribution favoured the federal government with N2.823 billion, while state governments received N9.409 billion and local councils obtained N6.586 billion.
Also noteworthy was the N581.710 billion derived from exchange differences, with the federal government claiming N276.110 billion, state governments receiving N140.047 billion, and LGAs obtaining N107.970 billion.
Additionally, N57.583 billion—representing 13% of mineral revenue—was equitably shared among the benefiting States. From the realm of solid minerals, N13.647 billion flowed, with the federal government acquiring N6.255 billion, states claiming N3.172 billion, and local government areas receiving N2.446 billion. A further distribution of N1.774 billion, also reflecting 13 percent of mineral revenue, was allocated to the benefiting States as derivation revenue.
As of July 2024, the balance in the Excess Crude Account (ECA) stood at an impressive $473,754.57, encapsulating the financial dynamics at play in the nation’s economy.
