FAAC: FG, States, LGCs share N1.203 trillion August 2024 revenue, down by 11.4% from July
The Federal Government, States, and Local Government Councils (LGCs) shared a total of N1.203 trillion for revenue generated in August 2024 and distributed in September 2024.
This represents a decrease of 11.4% compared to the N1.358 trillion shared from July 2024 revenue, distributed in August.
The revenue allocation was confirmed during the Federation Accounts Allocation Committee (FAAC) meeting held in Abuja on Tuesday, September 17, 2024.
This is according to a statement by Bawa Mokwa, Director of Press and Public Relations for the Office of the Accountant General of the Federation (OAGF).
Key Revenue Components
In the month of August 2024, a total revenue of N2.278 trillion was available, as indicated by the communiqué issued by FAAC.
However, deductions were made to account for collection costs and other obligations. A total of N81.975 billion was deducted for the cost of collection, while N992.617 billion was set aside for transfers, interventions, and refunds.
This resulted in the distributable revenue of N1.203 trillion that was shared among the Federal Government, States, and Local Government Councils in September 2024.
The total distributable revenue of N1.203 trillion for August comprised several key components. Statutory revenue increased to N186.636 billion, up from N161.593 billion in July, reflecting a 15.5% rise.
However, Value Added Tax (VAT) revenue saw a decline, dropping 8.3% from N582.307 billion in July to N533.895 billion in August.
Similarly, Electronic Money Transfer Levy (EMTL) revenue fell by 20.2%, with N15.017 billion shared in August compared to N18.818 billion in July.
One of the largest drops was seen in Exchange Difference revenue, which amounted to N468.245 billion in August, down 19.5% from N581.710 billion in July.
Distribution Breakdown
The Federal Government received N374.925 billion from the August revenue, marking a 13% decrease from the N431.079 billion it received from July’s revenue.
States received N422.861 billion, reflecting a 10.7% reduction from N473.477 billion in the previous month.
The Local Government Councils saw an 11% decrease, receiving N306.533 billion, compared to N343.703 billion in July.
Mineral-producing states shared N99.474 billion as 13% derivation revenue in August, a 9.4% decline from the N109.816 billion distributed in July.
In terms of the distributable statutory revenue of N186.636 billion, the Federal Government received N71.624 billion, the States N36.329 billion, and the Local Government Councils N28.008 billion. The remaining N50.675 billion was shared as 13% of mineral derivation revenue.
Out of the N533.895 billion VAT revenue, the Federal Government received N80.084 billion, the States N266.948 billion, and the Local Government Councils N186.863 billion. Meanwhile, the EMTL revenue of N15.017 billion was divided among the Federal Government (N2.252 billion), the States (N7.509 billion), and the Local Government Councils (N5.256 billion).
The FAAC communiqué also disclosed that the Federal Government received N220.964 billion from the N468.245 billion Exchange Difference revenue, with the States receiving N112.076 billion and the Local Government Councils N86.406 billion. An additional N48.799 billion was shared as 13% of mineral derivation revenue.
The report noted that August 2024 saw declines in Oil and Gas Royalty, Petroleum Profit Tax (PPT), VAT, Import and Excise Duties, EMTL, CET Levies, and Companies Income Tax (CIT). The balance in the Excess Crude Account (ECA) stood at $473,754.57 as of the end of the month.
