Revenue Distribution: FG, States, Local Govt Share N1.203trn in August

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Samuel Mobolaji

The Federal Government, states, and local governments in Nigeria collectively shared N1.203 trillion in revenue for August 2024, according to the Federation Accounts Allocation Committee (FAAC).

The Federal Government received N374.925 billion, states secured N422.861 billion, and local governments were allocated N306.533 billion.

This distribution follows the FAAC’s September meeting, which was detailed in a statement by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation. The total revenue available for August amounted to N2.278 trillion.

However, after deducting costs such as collection expenses amounting to N81.975 billion and various transfers and refunds totaling N992.617 billion, the distributable sum came to N1.203 trillion.

The revenue sources included statutory allocations, Value Added Tax (VAT), and the Electronic Money Transfer Levy (EMTL). Statutory revenue contributed N186.636 billion, VAT accounted for N533.895 billion, and EMTL added N15.017 billion. Additionally, N468.245 billion was attributed to adjustments related to exchange rates.

In comparison to July 2024, there was a noticeable decline in revenue. Statutory revenue decreased by N165.994 billion from the previous month’s N1.387 trillion. VAT collections also fell by N51.988 billion, down to N573.341 billion.

For August’s distribution, the Federal Government received N374.925 billion, while states collected N422.861 billion and local governments were allocated N306.533 billion. Oil-producing states benefited from N99.474 billion in derivation revenue.

From the statutory revenue of N186.636 billion, the Federal Government received N71.624 billion, states secured N36.329 billion, and local governments were allocated N28.008 billion. Oil-producing states additionally received N50.675 billion in derivation revenue.

Regarding VAT revenue, the Federal Government obtained N80.084 billion, states received N266.948 billion, and local governments were allocated N186.863 billion. From the EMTL, the Federal Government collected N2.252 billion, states secured N7.509 billion, and local governments were allocated N5.256 billion.

The N468.245 billion from exchange rate adjustments was shared with the Federal Government receiving N220.964 billion, states getting N112.076 billion, and local governments obtaining N86.406 billion. Oil-producing states also received an additional N48.799 billion from this revenue source.

The report also noted declines in revenues across several sectors, including oil and gas royalties, Petroleum Profit Tax (PPT), VAT, import and excise duties, EMTL, Common External Tariff (CET) levies, and Companies Income Tax (CIT). As of August 2024, Nigeria’s Excess Crude Account (ECA) balance was reported to be $473,754.57.

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