In a recent announcement, the Federation Account Allocation Committee (FAAC) has disclosed the distribution of N1.208 trillion to the federal, state, and local governments for May 2024. This allocation stems from the revenue collected in April 2024, encompassing various streams such as statutory allocations, Value Added Tax (VAT), and Electronic Money Transfer Levies (EMTL).
This distribution marks an approximate 8% increase from the N1.123 trillion allocated in the previous month, indicating a modest yet notable rise in government revenue flows.
According to a statement from the Office of the Accountant General, signed by Director (Press and Public Relations) Bawa Mokwa, the total distributable revenue comprised N284.716 billion from statutory revenue, N466.457 billion from VAT, N18.024 billion from EMTL, and N438.884 billion from the Exchange Difference revenue.
The total revenue available for April 2024 was N2.192 trillion. After deducting N80.517 billion for the cost of collection and N903.479 billion for transfers, interventions, and refunds, the remaining amount was distributed among the three tiers of government. Approximately 55% of the revenue made in April was shared among the federal, state, and local governments by May 2024.
From the total distributable revenue of N1.208 trillion, the Federal Government received N390.412 billion, the state governments received N403.403 billion, and the local government councils received N293.816 billion. Additionally, N120.450 billion (13% of mineral revenue) was allocated to the oil-producing states as derivation revenue.
Breaking down the revenue sources, the gross statutory revenue for April 2024 was N1.233 trillion, reflecting an increase of N216.282 billion compared to the N1.017 trillion received in March 2024. However, the gross revenue from VAT decreased to N500.920 billion, down by N48.778 billion from March 2024’s N549.698 billion. From the distributable VAT revenue of N466.457 billion, the Federal Government received N69.969 billion, the state governments received N233.229 billion, and the local government councils received N163.260 billion.
For the N284.716 billion distributable statutory revenue, the Federal Government received N112.148 billion, the state governments received N56.883 billion, and the local government councils were allocated N43.855 billion. Additionally, N71.830 billion (13% of mineral revenue) was distributed to the oil-producing states as derivation revenue.
The N18.024 billion from EMTL was allocated with N2.704 billion going to the Federal Government, N9.012 billion to the state governments, and N6.308 billion to the local government councils. From the N438.884 billion Exchange Difference revenue, the Federal Government received N205.591 billion, the state governments received N104.279 billion, and the local government councils received N80.394 billion. An additional N48.620 billion (13% of mineral revenue) was allocated to the oil-producing states.
The communiqué highlighted significant increases in oil and gas royalties, companies income tax (CIT), excise duty, petroleum profit tax (PPT), EMTL, and CET Levies for April 2024. Conversely, import duty and VAT recorded notable decreases.
As of the end of April 2024, the Excess Crude Account (ECA) balance stood at $473,754.57.
