The Federation Account Allocation Committee (FAAC) disbursed a total of N2.68 trillion to the three tiers of government in July 2024. This was from revenue generated in June 2024, according to a report released by the Nigeria Bureau of Statistics (NBS) on Tuesday.
The breakdown of the disbursement reveals that N1.43 trillion came from the Statutory Account, N472.19 billion from May’s exchange gain, N16.35 billion from the Electronic Money Transfer Levy, N200 billion from the Non-Oil Excess Account, and N562.69 billion from Value Added Tax (VAT).
According to the NBS report, “The Federation Account Allocation Committee disbursed the sum of N2.68tn to the three tiers of government in July 2024 from the total revenue generated in June 2024. The amount disbursed comprised N1.43tn from the Statutory Account, N472.19bn from Exchange Gain for May, N16.35bn from Electronic Money Transfer Levy, N200bn from Non-Oil Excess Account, and N562.69bn from Value Added Tax.”
Comparison with Previous FAAC Disbursements
This latest disbursement surpasses previous figures. FAAC had earlier shared N1.36 trillion among the federal, state, and local governments for July, based on revenues generated in the preceding month.
At FAAC’s August 2024 meeting, chaired by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, it was revealed that N2.61 trillion had been allocated. From this amount, the Federal Government received N431.1 billion, states were allocated N473.5 billion, and local government councils received N343.7 billion.
In contrast, the N2.68 trillion disbursed in July saw the Federal Government receive N459.78 billion, while states received N461.98 billion and local governments were allocated N337.02 billion.
13% Derivation Fund for Oil-Producing States
A sum of N95.60 billion was disbursed to oil-producing states under the 13% derivation fund, which compensates these states for their contributions to the national revenue through oil production.
Revenue-Generating Agencies’ Compensation
In addition to the disbursements to the three tiers of government, revenue-generating agencies were also compensated for their collection efforts. The Nigeria Customs Service received N20.87 billion, the Federal Inland Revenue Service (FIRS) got N55.13 billion, and the Nigerian Upstream Petroleum Development Regulatory Commission (NUPDRC) was allocated N16.10 billion.
Federal Government Share Breakdown
The Federal Government’s share was further broken down, with N319.49 billion allocated to the consolidated revenue account, N7.19 billion going towards derivation and ecology, N3.60 billion for the stabilization fund, N12.08 billion for the development of natural resources, and N12.34 billion directed to the Federal Capital Territory (FCT), Abuja.
FAAC’s Role in Revenue Distribution
FAAC is responsible for disbursing revenues generated into the Federation Accounts, which consist of various accounts specific to sectors and business types. These funds are distributed to the three tiers of government—federal, state, and local—on a monthly basis, ensuring that government bodies have access to the funds necessary for their operations and developmental projects.
Future Outlook
The N2.68 trillion disbursement for July represents a significant increase compared to previous months, reflecting stronger revenue collection. Last week, it was reported that FAAC disbursed N1.2 trillion in revenue for August 2024, with allocations going to the Federal Government, states, and local government councils. The FAAC meeting held in September 2024 in Abuja highlighted this distribution, as noted by the Office of the Accountant-General of the Federation.
This steady flow of revenue ensures that government entities can meet their financial obligations and fund essential public services, helping to maintain economic stability across the country.