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HomeTop NewsNigeria distributes N1.2 trln from federation revenue among three tiers of govts

Nigeria distributes N1.2 trln from federation revenue among three tiers of govts

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Nigeria’s Federation Account Allocation Committee (FAAC) announced the disbursement of N1.2 trillion in revenue to federal, state, and local governments during their May 2024 meeting.

This figure reflects a significant increase from the N1.01 trillion distributed in March 2024.

A breakdown of the revenue reveals multiple sources:

  • Distributable Statutory Revenue: N284.71 billion ($712 million)
  • Distributable Value-Added Tax (VAT) Revenue: N466.45 billion ($1.16 billion)
  • Electronic Money Transfer Levy Revenue: N18.02 billion ($45 million)
  • Exchange Difference Revenue: N438.88 billion ($1.09 billion)

The total revenue available in April 2024 was N2.19 trillion ($5.48 billion). After deductions for collection costs, transfers, interventions, and refunds, the net amount for distribution remained N1.2 trillion.

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Key Takeaways:

  • Increased revenue from oil and gas royalties, company income tax, excise duty, and electronic money transfer levies contributed to the higher distribution figure.
  • Import duty and value-added tax (VAT) saw a decrease compared to March 2024.

Distribution Breakdown:

  • Federal Government: N390.41 billion ($976 million)
  • State Governments: N403.40 billion ($1.01 billion)
  • Local Government Councils: N293.81 billion ($735 million)

Additional Revenue Sharing:

  • Mineral revenue derivation for benefiting states: N120.45 billion ($301 million)

The FAAC report also highlighted the continued presence of funds in the excess crude account, with a balance of $473.75 million as of April 2024.

This disbursement reflects Nigeria’s efforts to distribute federal revenue amongst various levels of government to fund critical public services and infrastructure projects.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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