FAAC: FG, states, and LGs split N1.208 trillion in revenue for April

The Federation Account Allocation Committee (FAAC) recently released the allocation of N1.208 trillion to various government levels for May 2024.

This allocation comes from the money earned in April 2024 and is drawn from multiple revenue streams, including statutory allocations, Value Added Tax (VAT), and Electronic Money Transfer Levies (EMTL).

The N1.123 trillion allotted in the previous month was increased by about 8% with this most recent payout, indicating a slight but significant increase in government revenue flows.

A statement from the Office of the Accountant General, written by Bawa Mokwa, Director (Press and Public Relations), states that the amount was revealed in a communiqué released by FAAC following the meeting in May 2024.

The N1.208 trillion total distributable revenue was made up of the following: N466.457 billion in distributable value-added tax (VAT), N18.024 billion in distributable electronic money transfer levy (EMTL) revenue, N284.716 billion in distributable statutory revenue, and N438.884 billion in exchange difference revenue.

Three levels of government split about 55% of the revenue

There was N2.192 trillion in revenue available as of April 2024. The remaining sum was divided among the three levels of government after N80.517 billion was subtracted from the cost of collecting and N903.479 billion for transfers, interventions, and refunds. 

By May 2024, roughly half of the money collected in April was distributed across the three levels of government.

• The federal government received N390.412 billion, state governments received N403.403 billion, and local government councils received N293.816 billion out of the N1.208 trillion total distributable revenue.
• Furthermore, the states that produce oil received N120.450 billion, or 13% of the earnings from minerals, as derivation money. 

Specifics of Revenue and Distribution

A rise of N216.282 billion was recorded in the gross statutory revenue for April 2024 (N1.233 trillion) as opposed to the N1.017 trillion received in March 2024.

However, from N549.698 billion in March 2024 to N500.920 billion in April 2024, the gross revenue from VAT fell by N48.778 billion. From the N466.457 billion distributable VAT revenue, the Federal Government received N69.969 billion, the State governments received N233.229 billion, and the Local Government Councils received N163.260 billion. 

The federal government received N112.148 billion, state governments received N56.883 billion, and local government councils received N43.855 billion of the N284.716 billion distributable statutory revenue. The oil-producing states divided N71.830 billion, or 13% of the mineral revenue, as derivation money from this.

The federal government received N2.704 billion, the state governments received N9.012 billion, and the local government councils received N6.308 billion of the N18.024 billion EMTL. 

The federal government earned N205.591 billion, state governments received N104.279 billion, and local government councils received N80.394 billion from the N438.884 billion Exchange Difference revenue. The states that produce oil received an additional N48.620 billion, or 13% of the money generated by minerals.

Significant hikes in petroleum profit tax (PPT), corporations income tax (CIT), excise duty, oil and gas royalties, electronic money transfer levy (EMTL), and CET levies were emphasized in the communiqué for April 2024. On the other hand, import taxes and VAT saw significant declines.

As of the end of April 2024, the Excess Crude Account (ECA) balance was $473,754.57.