FAAC: FG, states, LGAs shared N1.2trn in August — down by N155bn

The federation account allocation committee (FAAC) says the three tiers of government shared a total of N1.203 trillion in August 2024 from a gross total of N2.278 trillion.

According to a statement on Tuesday by Mohammed Manga, director of information and public relations at ministry of finance, FAAC announced the allocation at its September meeting chaired by Wale Edun, minister of finance.

The amount shared dropped by N155 billion compared to the N1.35 trillion allocated in July.

“From the stated amount inclusive of gross statutory revenue, value added tax (VAT), electronic money transfer levy (EMTL) and exchange difference (ED), the federal government received N374.925 billion, the states received N422.861 billion, the local government councils got N306.533 billion, while the oil producing states received N99.474 billion as derivation, (13% of mineral revenue),” Manga said.

“The sum of N81.975 billion was given for the cost of collection, while N992.617 billion was allocated for transfers intervention and refunds.”

Manga said the communique issued by the FAAC shows that the gross revenue from VAT for August was N573.341 billion, representing a decrease of N51.988 billion from the N625.329 billion distributed in July.

He said from that amount, the sum of N22.934 billion was allocated for the cost of collection and the sum of N16.512 billion was given for transfers, intervention and refunds while the remaining N533.895 billion was shared among the three tiers of government.

The director said the federal government received N80.084 billion, the states got N266.948 billion, and local government councils were allocated N186.863 billion.

“Accordingly, the gross statutory revenue of N1.221 trillion received for the month was lower than the sum of N1.387 received in the previous month by N165.994,” Manga said.

“From the stated amount, the sum of N58.415 billion was allocated for the cost of collection and a total sum of N976.105 billion for transfers, intervention and refunds.

“The remaining balance of N186.636 billion was distributed as follows to the three tiers of government: federal government got the sum of N71.624 billion, states received N36.329 billion, the sum of N28.008 billion was allocated to LGCs and N50.675 billion was given to derivation revenue (13% mineral producing states).

“Also, the sum of N15.643 billion from electronic money transfer levy (EMTL) was distributed to the three (3) tiers of government as follows: the federal government received N2.252 billion, states got N7.509 billion, local government councils received N5.256 billion, while N0.626 billion was allocated for cost of collection.”

He said the communique also showed that N468.245 billion from the exchange difference was shared, with the federal government receiving N220.964 billion, the states receiving N112.076 billion, local governments N86.406 billion and N48.799 billion going to the oil-producing states as derivation (13 percent of mineral revenue).

Manga said the communique also reported decreases in revenue from companies income tax (CIT), VAT, import and excise duties, EMTL, petroleum profit tax (PPT), oil and gas royalty and customs external tariff (CET) levies.

“According to the communique, the total revenue distributable for the current month of August 2024, was drawn from statutory Revenue of N186.636 Billion, Value Added Tax (VAT) of N533.636 Billion,  N15.017 Billion from Electronic Money Transfer Levy (EMTL) and N468.245 Billion from Exchange Difference, bringing the total distributable amount for the month to N1.203 Trillion,” he said.

“The balance in the Excess Crude Account (ECA) as at September 2024 stands at $473.754.57.”

‘NIGERIA’S ECONOMY IS ON RIGHT PATH’

Speaking at the meeting, Edun appreciated members of the FAAC for their continued support and contributions, urging them to do more.

He also thanked revenue-generating agencies for their hard work in ensuring smooth operations for all levels of government.

The minister assured that Nigeria’s economy is on the right path, adding that the country has a president whose actions are in line with the rule of law.

“He is making sure that whatever the country is going through is a stringent economic conditions aimed at repositioning the economy for the benefit and future of our country,” Edun said.

“The policies are for the good of the nation. It is for our own good, we have to go through turbulent situation before the economy will stabilise for good.”

Edun said the economic challenges are not unique to Nigeria but are being experienced globally, adding that “we have to play our own role and fasten our belts”.