The Federation Accounts Allocation Committee (FAAC) has announced the disbursement of N1.203 trillion in revenue for August 2024 to the Federal Government, State Governments, and Local Government Councils.
The announcement is contained in a communiqué released after the FAAC’s September 2024 meeting in Abuja.
The total distributable revenue of N1.203 trillion comprises several sources, reflecting the government’s diverse revenue streams. This amount includes distributable statutory revenue of N186.636 billion, distributable Value Added Tax (VAT) revenue of N533.895 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.017 billion, and Exchange Difference revenue of N468.245 billion. These figures reflect the government’s continued reliance on multiple channels to generate public funds, although some sources showed a decrease from the previous month.
The FAAC communiqué also reported that the total revenue available for distribution in August 2024 was N2.278 trillion. However, the actual distributable amount was reduced following deductions for cost of collection, which stood at N81.975 billion, as well as transfers, interventions, and refunds amounting to N992.617 billion.
These deductions indicate the costs incurred by various government agencies in collecting the revenue, as well as amounts transferred for specific interventions or refunds during the month.
The gross statutory revenue collected for August 2024 amounted to N1.221 trillion, representing a decrease of N165.994 billion compared to July 2024, when the statutory revenue was N1.387 trillion.
Similarly, the gross revenue from VAT for August was N573.341 billion, down by N51.988 billion from the N625.329 billion recorded in July. These declines highlight the volatility in some of the major revenue sources, particularly as they relate to domestic consumption and taxation.
From the N1.203 trillion total distributable revenue, the Federal Government, State Governments, and Local Government Councils received allocations. The Federal Government received N374.925 billion, the State Governments received N422.861 billion, and the Local Government Councils received N306.533 billion. In addition, a total sum of N99.474 billion, which represents 13% of mineral revenue, was shared to the oil-producing states as derivation revenue.
Of the N186.636 billion distributable statutory revenue, the Federal Government received N71.624 billion, while the State Governments received N36.329 billion, and the Local Government Councils received N28.008 billion. Furthermore, N50.675 billion was allocated to oil-producing states as derivation revenue from this statutory distribution.
From the N533.895 billion VAT revenue, the Federal Government received N80.084 billion, while the State Governments and Local Government Councils received N266.948 billion and N186.863 billion respectively.
In terms of the N15.017 billion generated from the Electronic Money Transfer Levy (EMTL), the Federal Government received N2.252 billion, while the State Governments received N7.509 billion, and the Local Government Councils received N5.256 billion.
The N468.245 billion from Exchange Difference revenue was distributed with the Federal Government receiving N220.964 billion, the State Governments receiving N112.076 billion, and the Local Government Councils receiving N86.406 billion. In addition, oil-producing states were allocated N48.799 billion from this revenue as derivation.
The communiqué noted significant declines in several key revenue sources for August 2024. Oil and Gas Royalty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import and Excise Duties, Electronic Money Transfer Levy (EMTL), CET Levies, and Companies Income Tax (CIT) all recorded decreases. These reductions reflect broader economic challenges, particularly within the oil and gas sector, which continues to face fluctuating global prices and production issues. The decrease in VAT collections may also point to reduced consumer spending or changes in VAT remittance compliance.
As of August 2024, the balance in the Excess Crude Account (ECA), which serves as a savings buffer for the country in times of revenue shortfall, stood at $473,754.57. The meager amount in the ECA remains a point of concern, given the country’s reliance on crude oil revenues to fund many of its developmental and fiscal obligations.
The N1.203 trillion shared among the Federal, State, and Local Governments for August 2024 reflects both the ongoing fiscal challenges Nigeria faces and the government’s efforts to manage public revenue collection and distribution. The significant declines in statutory revenue and VAT, compared to July 2024, underscore the need for more diversified and stable revenue sources to sustain the government’s financial commitments.
Despite these challenges, the revenue distribution ensures that all tiers of government receive funds necessary for governance and service delivery, although the dwindling contributions from traditional sectors like oil and gas remain a critical concern moving forward.
