FAAC Shares N1.2tn as Federation Account Grosses N2.278tn in August

•Cost of collection, transfers, interventions and refunds gulp N1.075tn

Ndubuisi Francis in Abuja

The Federation Account Allocation Committee (FAAC), yesterday, disbursed a total sum of N 1.203 trillion to the three tiers of government from the August 2024 federation accounts revenue.

The amount was about N1.075 trillion less than the gross total of N2.278 trillion, which accrued to the federation account in August.

Total deduction for cost of collection was N81.975 billion, while total transfers, interventions and refunds accounted for N992.617 billion, bringing aggregate deductions to N1.075 trillion.

Citing a communique issued after the FAAC meeting in Abuja, a statement from the Office of the Accountant General of the Federation (OAGF) disclosed that the N1.203 trillion total distributable revenue comprised distributable statutory revenue of N186.636 billion, distributable Value Added Tax (VAT) revenue of N533.895 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.017 billion, and Exchange Difference revenue of N468.245 billion. 

A major highlight of the federation account revenue In August was a decrease in Oil and Gas Royalty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import and Excise Duties, Electronic Money Transfer Levy (EMTL), CET Levies, and Companies Income Tax (CIT).

Gross statutory revenue of N1.221 trillion received for the month of August 2024 was lower than the sum of N1.387 trillion posted in the month of July 2024 by N165.994 billion. 

The statement said, “Gross revenue of N573.341 billion was available from Value Added Tax (VAT) in August 2024. This was lower than the N625.329 billion available in the month of July 2024 by N51.988 billion.  

“The communiqué stated that from the N1.203 trillion total distributable revenue, the federal government received total sum of N374.925 billion and the state governments received total sum of N422.861 billion.

“The local government councils received total sum of N306.533 billion and a total sum of N99.474 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.”

It added that of the N186.636 billion distributable statutory revenue, the federal government received N71.624 billion, states received N36.329 billion, while local government councils got N28.008 billion.

The sum of N50.675 billion, representing 13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

From the N533.895 billion distributable VAT revenue, the federal government received N80.084 billion, states received N266.948 billion, while the local government councils received N186.863 billion, the statement said.

It revealed that a total sum of N2.252 billion was received by the federal government from the N15.017 billion Electronic Money Transfer Levy (EMTL), states got N7.509 billion, while the local government councils received N5.256 billion.

Likewise, from the N468.245 billion Exchange Difference revenue, the federal government received N220.964 billion, states received N112.076 billion, while the local government councils received N86.406 billion.

The sum of N48.799 billion or 13 per cent of mineral revenue was shared to the benefiting states as derivation revenue.

The balance in the Excess Crude Account (ECA) remained $473,754.57.