FAAC: FG, States, Local Governments Share N1.35tn Revenue For June 2024

FG, States, and Local Government shared N1.35tn revenue for June 2024.

Newsone Nigeria reports that the Federation Account Allocation Committee (FAAC) has revealed that the three tiers of government in Nigeria shared a total sum of N1.35 trillion in June 2024.

This online news platform understands that the amount shared was from the total N2.48tn revenue generated by various agencies and N150m more than the N1.2tn shared in May.

A statement issued on Tuesday, July 16, 2024, by the Director of Information and Public Relations, Finance Ministry, Mohammed Manga, said the Federal Government received a total sum of N459.776bn, the States received N461.979bn, the Local Government Councils got N337.019bn.

The Director however didn’t confirm if LGCs administrated by the caretaker committee received statutory allocations as directed by the Supreme Court.

Last week, the apex court ordered the Federal Government to immediately start the direct payment of local government funds to the latter’s exclusive accounts.

The court ordered immediate compliance with the judgement, stating that no state government should be paid monies meant 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 sum of N1,35tn to the three tiers of government as Federation Allocation for m a gross total of N2,48tn.

“From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax, Electronic Money Transfer Levy, Exchange Difference, and an Augmentation of N200 Billion, the Federal Government received N459.776 Billion, the States received N461.979 Billion, the Local Government Councils got N337.019 Billion, while the Oil Producing States received N95.598 Billion as Derivation, (13 per cent of Mineral Revenue).”

It added that the sum of N92.11bn was given for the cost of collection, while N1.037bn was allocated for transfer Intervention and refunds.

It said CoCompanies’ncome Tax and Value Added Tax increased significantly, Import and Excise Duties and Electronic Money Transfer levies increased marginally while Petroleum Profit, Royalty Crude, Rentals and Customs External tariff levies recorded considerably decreases.

The sum of N92.11bn was given for the cost of collection, while N1.037bn was allocated for transfer intervention and refunds.

The Communique issued by the committee at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax for June 2024, was N562.685bn as against N497.66bn distributed in the preceding month, increasing to N65.020bn.

The Communique stated, “From that amount, the sum of N22.507bn was allocated for the cost of collection and the sum of N16.205bn was given for transfers, intervention and refunds.

“The remaining sum of N523.973bn was distributed to the three tiers of government, of which the Federal Government got N78.596bn, the States received N261.987bn and Local Government Councils got N183.39bn.

Accordingly, the Gross Statutory Revenue of N1.24tn was received for the month. From the stated amount, the sum of N68.95bn was allocated for the cost of collection and a total sum of N1.02tn for transfers, intervention and refunds.

The remaining balance of N142.514bn was distributed as follows to the three tiers of government: Federal Government got the sum of N48.95bn, States received N24.83bn, the sum of N19.14bn was allocated to LGCs and N49.59bn was given to Derivation Revenue (13 per cent Mineral producing States).

Also, the sum of N16.35bn from the Electronic Money Transfer Levy was distributed to the three tiers of government as follows: the Federal Government received N2.354bn, States got N7.85bn, Local Government Councils received N5.49bn, while N0.654bn was allocated for the cost of collection.

The Communique also disclosed the sum of N472.19bn from Exchange Difference, which was shared as follows: Federal Government received N224.51bn, States got N113.88bn, the sum of N87.79bn was allocated to Local Government Councils, N46.01bn was given for Derivation (13 per cent of Mineral Revenue).

It further disclosed an Augmentation of N200bn which was shared as follows: the Federal Government got N105.4bn, the States received the sum of N53.44bn, while the sum of N41.200bn was allocated to Local Government Councils.

Companies’ Income Tax and Value Added Tax increased significantly, while Import and Excise Duties and Electronic Money Transfer Levies increased marginally. Petroleum Profit, Royalty Crude, Rentals and Customs External Tariff levies recorded considerable decreases.

According to the Communique, the total revenue distributable for the current month of June 2024, was drawn from Statutory Revenue of N142.5bn, Value Added Tax of N523.98bn, N15.69bn from Electronic Money Transfer Levy, N472.19bn from Exchange Difference and Augmentation of N200bn, bringing the total distributable amount for the month to N1.36tn.

“The balance in the Excess Crude Account as of July 2024 stands at $473,754.57,” the Communique said.