Recently, following the Supreme Court’s rulling on the autonomy to local governments over their accounts, the Federal Accounts Allocation Committee (FAAC) distributed a total of N1.354 trillion in June. This amount was designated for allocation among the federal, state, and local governments.
Chaired by Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, the distribution occurred during the latest FAAC meeting held in Abuja.
**Breakdown of the Distribution:**
The distribution breakdown of the N1.354 trillion includes the following sources:
– Value Added Tax (VAT) revenue: N523.973 billion
– Statutory revenue: N142.514 billion
– Electronic Transfer Money Levy (EMTL) revenue: N15.692 billion
– Exchange difference revenue: N472.19 billion
– Augmentation: N200 billion
Further insights from the data indicate that a total revenue of N2.483 trillion was available in June 2024. After subtracting costs amounting to N92.112 billion, total transfers, refunds, and interventions amounted to N1.037 billion.
**Comparison with May 2024:**
A comparative analysis between May and June reveals significant growth in revenue:
– Gross revenue in May: N1.223 trillion
– Gross revenue in June: N1.432 trillion
– Difference: N208.773 billion
Specifically, VAT revenue also showed growth:
– VAT revenue in May: N497.665 billion
– VAT revenue in June: N562.685 billion
– Difference: N65.020 billion
This growth underscores a positive trend in revenue generation between the two months.
**Allocation Details:**
According to the communique released:
– Local Government Councils (LGCs) received N337.019 billion
– State governments received N461.979 billion
– Federal government received N459.776 billion
Additionally, N95.598 billion (13% of mineral revenue) was shared among benefiting states as derivation revenue, with the balance in crude oil standing at $473.754.
Foreign exchange rate differences were distributed as follows:
– Local governments: N224.514 billion
– State governments: N113.877 billion
– Federal government: N224.514 billion
– Total FX rate differences: N472.192 billion
Furthermore, N200 billion was disbursed as augmentation, distributed as follows:
– Federal government: N105.360 billion
– State governments: N53.440 billion
– Local government councils: N41.200 billion
In summary, there were notable increases in companies’ income tax, value added tax, import and excise duties, and electronic money transfer levy (EMTL).
This distribution and analysis highlight the financial movements and allocations within Nigeria’s governmental structure for the month of June 2024.
