In July 2024, the Federation Account Allocation Committee disbursed a total sum of N1.36tn to the federal, state, and local governments as part of the Federation Allocation. This allocation was from a gross total of N2.61tn.
During the August 2024 meeting chaired by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, the committee shared N431.1bn with the Federal Government, N473.5bn with the states, and N343.7bn with the Local Government Councils.
According to a statement from the Finance Ministry’s Director of Information and Public Relations, Mohammed Manga, key revenue sources such as Oil and Gas Royalty, Petroleum Profit Tax, Value Added Tax, Import Duty, Electronic Money Transfer Levy, and External tariff levies saw significant increases. However, Companies Income Tax decreased while Excise Duties saw a marginal increase.
The communique stated, “Out of the total N2.61tn which includes Gross Statutory Revenue, Value Added Tax, Electronic Money Transfer Levy, Exchange Difference, and N13.647 Billion from Solid Mineral Revenue, the Federal Government received N431.079 Billion, the States received N473.477 Billion, the Local Government Councils got N343.703 Billion, while the Oil Producing States received N109.816 Billion as Derivation (13 per cent of Mineral Revenue).
“Additionally, N99.756 Billion was allocated for collection costs, and N109.816 Billion was designated for Transfers Intervention and Refunds.”
The communique also noted that the Value Added Tax for July 2024 stood at N625.33bn, a significant increase from the previous month. Out of this amount, N25.01bn was allocated for collection costs, N18.01bn for Transfers, Intervention, and Refunds, and the remaining N582.31bn was distributed to the federal, state, and local governments.
Manga highlighted that the Gross Statutory Revenue for July amounted to N1.37tn, a decrease from the previous month. From this total, N73.959bn was set aside for collection costs, while N1.14tn was designated for Transfers, Intervention, and Refunds.
Further breakdown revealed that N161.593 Billion was distributed among the three tiers of government, with the Federal Government receiving N58.55bn, States N29.69bn, LGCs N22.89bn, and Derivation Revenue (13 per cent Mineral producing States) N50.46bn.
Moreover, N19.6bn from the Electronic Money Transfer Levy was disbursed: Federal Government N2.82bn, States N9.41bn, LGCs N6.59bn, and collection costs N0.784bn.
Exchange Difference brought in N581.71bn, allocated as follows: Federal Government N276.11bn, States N140.02bn, LGCs N107.97bn, and Derivation (13 per cent of Mineral Revenue) N57.58bn.
An amount of N13.647bn from Solid Mineral Revenue was shared: Federal Government N6.255bn, States N3.17bn, LGCs N2.446bn, and Deviation (13 per cent of Mineral Revenue) N1.77bn.
The total revenue distributable for July 2024 came from various sources, totaling N1.358.1tn.
“The Excess Crude Account balance as of August 2024 is $473,754.57.”
Appreciating the committee, the minister lauded their support during recent events and urged continued backing for the government’s economic transformation efforts. He also commended Tinubu for signing the National Minimum Wage Act into law, emphasizing its benefits for all Nigerians.