N1.203 Trillion Revenue Shared Among Federal, State, and Local Governments for August 2024
In a bid to sustain the fiscal operations of all tiers of government, the Federation Accounts Allocation Committee (FAAC) has disbursed N1.203 trillion in revenue for August 2024. This distribution, which was revealed in the committee’s September meeting in Abuja, was shared among the Federal Government, State Governments, and Local Government Councils.
Breakdown of Revenue Sources
The N1.203 trillion distributed for August comprises multiple revenue streams, reflecting the diverse methods the government uses to generate public funds. These include N186.636 billion in statutory revenue, N533.895 billion from Value Added Tax (VAT), N15.017 billion from the Electronic Money Transfer Levy (EMTL), and N468.245 billion from Exchange Difference revenue. Despite the comprehensive nature of these sources, some showed a decrease compared to July 2024, underscoring the inherent volatility in government revenues.
Total Revenue Available vs. Distributable Amount
The total revenue available for August 2024 was recorded at N2.278 trillion, a figure higher than the final distributable amount. This difference arose from deductions totaling N1.074 trillion, which included the cost of collection at N81.975 billion and various transfers, interventions, and refunds amounting to N992.617 billion. These deductions highlight the operational costs incurred by government agencies and the financial commitments directed towards targeted interventions.
Decline in Major Revenue Sources
The gross statutory revenue for August 2024 amounted to N1.221 trillion, a decrease of N165.994 billion compared to July’s N1.387 trillion. VAT collections also saw a dip, with August recording N573.341 billion, down by N51.988 billion from the N625.329 billion reported in July. These fluctuations reflect a broader trend of instability in key revenue streams, driven by changes in domestic consumption and taxation patterns.
Allocation of the N1.203 Trillion Revenue
Of the total N1.203 trillion revenue for August 2024, the Federal Government received N374.925 billion, while State Governments were allocated N422.861 billion, and Local Government Councils received N306.533 billion. Additionally, oil-producing states benefitted from N99.474 billion as 13% derivation revenue from mineral resources.
Statutory and VAT Revenue Distribution
From the N186.636 billion in statutory revenue, the Federal Government took N71.624 billion, State Governments received N36.329 billion, and Local Government Councils were allocated N28.008 billion. Oil-producing states received an additional N50.675 billion in derivation revenue from this statutory distribution.
Regarding VAT revenue, N533.895 billion was distributed, with the Federal Government receiving N80.084 billion. State Governments were allocated N266.948 billion, and Local Government Councils received N186.863 billion. The distribution of VAT continues to reflect its critical role in public financing.
Electronic Money Transfer Levy (EMTL) and Exchange Difference Revenue
The N15.017 billion collected through the Electronic Money Transfer Levy (EMTL) was distributed, with the Federal Government receiving N2.252 billion. State Governments were allocated N7.509 billion, and Local Government Councils received N5.256 billion.
In addition, N468.245 billion from Exchange Difference revenue was shared, with N220.964 billion going to the Federal Government, N112.076 billion to State Governments, and N86.406 billion to Local Government Councils. Oil-producing states were allocated N48.799 billion from this source as derivation revenue.
Conclusion
The N1.203 trillion revenue distribution for August 2024 reflects the Nigerian government’s reliance on various revenue streams, despite volatility in some of its primary sources. As federal, state, and local governments continue to navigate these fiscal challenges, maintaining revenue stability will be essential for sustainable governance.
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