FAAC Releases N1.358 Trillion in July Federation Revenue

FAAC Allocates N1.358 Trillion in July Revenue Distribution.

The Federation Accounts Allocation Committee (FAAC) convened in Abuja on Friday, distributing a total sum of N1.358 trillion among the Federal Government, State Governments, and Local Government Councils. This allocation, derived from the July 2024 Federation Accounts Revenue, aims to promote equitable resource distribution nationwide.

According to the FAAC communiqué, the Federal Government received N431.079 billion, while State Governments were allocated N473.477 billion. Local Governments received N343.703 billion, and oil-producing states were granted N109.816 billion as derivation revenue.

The breakdown of the N1.358 trillion distributable revenue includes N161.593 billion in statutory revenue, N582.307 billion in Value Added Tax (VAT) revenue, and N18.818 billion in Electronic Money Transfer Levy (EMTL) revenue. Additionally, the revenue comprised N581.710 billion from Exchange Difference and N13.647 billion from Solid Mineral revenue.

The total revenue available in July 2024 amounted to N2.613 trillion, with deductions for cost of collection and transfers, interventions, and refunds totaling N1.155 trillion. The gross statutory revenue for July 2024 stood at N1.387 trillion, representing a decline of N45.517 billion compared to June 2024.

Notably, Value Added Tax (VAT) generation increased by N62.644 billion in July 2024, reaching N625.329 billion. The Federal Government received N431.079 billion, while State Governments received N473.477 billion. Local Government Councils received N343.703 billion, and oil-producing states were granted N109.816 billion as derivation revenue.

Further analysis reveals significant increases in Oil and Gas Royalty, Petroleum Profit Tax (PPT), VAT, Import Duty, EMTL, and CET Levies, while Companies Income Tax (CIT) recorded a decrease and Excise Duties slightly increased. The balance in the Excess Crude Account (ECA) remained unchanged at $473,754.57.

This latest revenue distribution aims to foster development and promote economic growth across Nigeria’s various tiers of government.