In August 2024, the Federal Government, state governments, and local government councils in Nigeria received a total of N1.2 trillion in revenue allocations, according to the Federal Accounts Allocation Committee (FAAC). This distribution was confirmed during FAAC’s September meeting in Abuja, as outlined in a statement by Bawa Mokwa, the Director of Press and Public Relations at the Office of the Accountant-General of the Federation.
This figure marks an 11% decline from the N1.358 trillion distributed in July, representing a reduction of N155 billion. The August revenue distribution was derived from various sources, including statutory revenues and taxes. Specifically, the revenue breakdown for August comprised N186.64 billion in statutory revenue, N533.90 billion from Value Added Tax (VAT), N15.02 billion from the Electronic Money Transfer Levy, and N468.25 billion from exchange rate gains.
From the total distributable revenue of N1.203 trillion, the Federal Government received N374.93 billion, while state governments were allocated N422.86 billion. Local government councils were allocated N306.53 billion. In addition, N99.47 billion, representing 13% of mineral revenues, was distributed to oil-producing states as derivation revenue.
According to the FAAC communiqué, the gross statutory revenue for August amounted to N1.22 trillion, a decrease of N165.99 billion compared to the N1.39 trillion collected in July. Similarly, VAT revenue for August stood at N573.34 billion, reflecting a decrease of N51.99 billion from the previous month’s figure of N625.33 billion.
This revenue sharing system is crucial for funding government operations and development projects across the three tiers of government in Nigeria, helping to sustain essential services and infrastructure in the country.
