The Federation Accounts Allocation Committee (FAAC) has declared that the entire revenue for May 2024 will be distributed in the amount of N1.143 trillion.
An announcement from the Office of the Accountant General, signed by its Director (Press and Public Relations), Bawa Mokwa, states that this was made at the June 2024 FAAC meeting, which was presided over by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
The distributable revenue for April 2024 was N1.208 trillion, which represented a 5.38% decrease from the previous month’s revenue.
How Revenue Was Generated
- Following its June meeting, the FAAC released a communiqué outlining the N1.143 trillion distributable revenue, which was made up of N157.183 billion in statutory revenue, N463.425 billion in value-added tax (VAT) revenue, N15.146 billion in revenue from the Electronic Money Transfer Levy (EMTL), and N507.456 billion in revenue from exchange differences.
- May 2024’s gross statutory revenue was N1.224 trillion, down N9.604 billion from April 2024’s N1.233 trillion.
- Similarly, May’s VAT collection of N497.665 billion represented a slight decrease of N3.255 billion from April’s revenue of N500.920 billion.
About 49% of revenue made in May was shared among three tiers of government
- The total revenue made in May 2024 was 325 trillion, which is a slight increase of 6.07% from N2.192 trillion made in the previous month.
- After deducting 647 billion for the cost of collection and N1.105 trillion for transfers, interventions, and refunds, the remaining amount was distributed among the three tiers of government.
Approximately 49% of revenue made in May was shared among the three tiers of government by June 2024.
How the revenue was shared
- From the total distributable revenue of N1.143 trillion, the Federal Government received N365.813 billion, State Governments received N388.419 billion, and Local Government Councils received N282.476 billion. Additionally, N106.502 billion was distributed as derivation revenue to states benefiting from mineral resources.
- Also, the N157.183 billion statutory revenue was divided with the Federal Government receiving N61.010 billion, State Governments N30.945 billion, and Local Government Councils N23.857 billion. An additional N41.371 billion in derivation revenue was shared among mineral-producing states.
- The VAT revenue of N463.425 billion was allocated with N69.514 billion to the Federal Government, N231.713 billion to State Governments, and N162.199 billion to Local Government Councils. From the N15.146 billion EMTL, the Federal Government received N2.272 billion, State Governments N7.573 billion, and Local Government Councils N5.301 billion.
- In terms of the N507.456 billion Exchange Difference revenue, N233.017 billion went to the Federal Government, N118.189 billion to State Governments, and N91.119 billion to Local Government Councils. A further N65.131 billion was allocated as derivation revenue.
