The Federation Accounts Allocation Committee (FAAC) has announced the disbursement of N1.143 trillion as the total revenue for May 2024.
This announcement was made at the June 2024 FAAC meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, according to a statement from the Office of the Accountant General signed by its Director (Press and Public Relations), Bawa Mokwa.
There was a 5.38% decline from the previous month’s distributable revenue as N1.208 trillion was shared as April 2024 revenue.
Where the Revenue Came From
- A communiqué released by FAAC after its June meeting detailed that the N1.143 trillion distributable revenue included statutory revenue of N157.183 billion, Value Added Tax (VAT) revenue of N463.425 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.146 billion, and Exchange Difference revenue of N507.456 billion.
- The gross statutory revenue for May 2024 stood at N1.224 trillion, a slight decrease from April 2024’s N1.233 trillion by N9.604 billion.
- Similarly, VAT revenue for May was N497.665 billion, a marginal drop from April’s N500.920 billion by N3.255 billion.
About 49% of revenue made in May was shared among three tiers of government
- The total revenue made in May 2024 was 325 trillion, which is a slight increase of 6.07% from N2.192 trillion made in the previous month.
- After deducting 647 billion for the cost of collection and N1.105 trillion for transfers, interventions, and refunds, the remaining amount was distributed among the three tiers of government.
Approximately 49% of revenue made in May was shared among the three tiers of government by June 2024.
How the distributable revenue was shared
- From the total distributable revenue of N1.143 trillion, the Federal Government received N365.813 billion, State Governments received N388.419 billion, and Local Government Councils received N282.476 billion. Additionally, N106.502 billion was distributed as derivation revenue to states benefiting from mineral resources.
- Also, the N157.183 billion statutory revenue was divided with the Federal Government receiving N61.010 billion, State Governments N30.945 billion, and Local Government Councils N23.857 billion. An additional N41.371 billion in derivation revenue was shared among mineral-producing states.
- The VAT revenue of N463.425 billion was allocated with N69.514 billion to the Federal Government, N231.713 billion to State Governments, and N162.199 billion to Local Government Councils. From the N15.146 billion EMTL, the Federal Government received N2.272 billion, State Governments N7.573 billion, and Local Government Councils N5.301 billion.
- In terms of the N507.456 billion Exchange Difference revenue, N233.017 billion went to the Federal Government, N118.189 billion to State Governments, and N91.119 billion to Local Government Councils. A further N65.131 billion was allocated as derivation revenue.
More Insights
The communiqué noted significant increases in Companies Income Tax Oil (CIT) and Petroleum Profit Tax (PPT) for May 2024.
However, there were considerable decreases in Import and Excise Duties, Royalty Crude and Gas, EMTL, CET Levies, and VAT.
The balance in the Excess Crude Account (ECA) stood at $473,754.57, indicating a stable reserve for unforeseen economic needs.
