By Frank Momoh
The Federation Account Allocation Committee (FAAC), at its May 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total sum of N1,208.081 trillion to the three tiers of government as Federation Allocation for the month of April, 2024 from a gross total of N2,192.007 trillion.
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 N390.412 billion, the States received N403.403 billion and the Local Government Councils got N293.816 billion, while the Oil Producing States received N120.450 Billion as Derivation, (13% of Mineral Revenue).
The sum of N80.517 billion was given for the cost of collection, while N903.479 billion was allocated for Transfers Intervention and Refunds.
The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of April 2024, was N500.920 billion as against N549.698 billion distributed in the preceding month, resulting in a decrease of N48, 778 billion.
From that amount, the sum of N20.037 Billion was allocated for the cost of collection and the sum of N14.426 Billion given for Transfers, Intervention and Refunds. The remaining sum of N466.457 Billion was distributed to the three tiers of government, of which the Federal Government got N69.969 Billion, the States received N233.229 billion, and Local Government Councils got N163.260 billion.
Accordingly, the Gross Statutory Revenue of N1, 233.498 trillion received for the month was higher than the sum of N1, 017.216 trillion received in the previous month of March 2024 by N216.282 billion. From the stated amount, the sum of N59.729 billion was allocated for the cost of collection and a total sum of N889.053 billion for Transfers, Intervention and Refunds.
The remaining balance of N284.716 billion was distributed as follows to the three tiers of government: Federal Government got the sum of N112.148 Billion, States received N56.883 Billion, the sum of N43.855 Billion was allocated to LGCs and N71.830 billion was given to Derivation Revenue (13% Mineral producing States).
Also, the sum of N18.775 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.704 billion, States got N9.012 billion, and Local Government Councils received N6.308 billion, while N0.751 billion was allocated for Cost of Collection.
The Communique also disclosed the sum of N438.884 billion from Exchange Difference, which was shared as follows: Federal Government received N205.591 Billion, States got N104.279 billion, the sum of N80.394 billion was allocated to Local Government Councils, while N48.620 billion was given for Derivation (13% of Mineral Revenue).
Oil and Gas Royalties, Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), Customs External Tariff levies (CET) and Electronic Money Transfer Levy (EMTL) increased significantly, while Import Duty and Value Added Tax (VAT) recorded considerably decreases.
According to the Communique, the total revenue distributable for the current month of April 2024, was drawn from Statutory Revenue of N284.716 Billion, Value Added Tax (VAT) of N466.457 billion, N18.024 billion from Electronic Money Transfer Levy (EMTL), and N438.884 billion from Exchange Difference, bringing the total distributable amount for the month to N1,208.081 trillion.
The balance in the Excess Crude Account (ECA) as at May 2024 stands at $473,754.57.
