The Federation Accounts Allocation Committee (FAAC) has announced the distribution of N1.208 trillion to the Federal Government, States, and Local Government Councils for May 2024, based on revenue generated in April. This marks an increase from the N1.017 trillion distributed in March 2024.
The total distributable revenue of N1.208 trillion is comprised of several components: N284.716 billion from distributable statutory revenue, N466.457 billion from Value Added Tax (VAT), N18.024 billion from the Electronic Money Transfer Levy (EMTL), and N438.884 billion from exchange rate differential revenue.
Despite the total revenue available in April 2024 being N2.192 trillion, deductions for collection costs (N80.517 billion) and transfers, interventions, and refunds (N903.479 billion) reduced the distributable amount to N1.208 trillion.
Breaking down the revenue components, gross statutory revenue rose by N216.282 billion from March’s N1.017 trillion to N1.233 trillion. Conversely, VAT revenue saw a decrease of N48.778 billion, dropping from N549.698 billion to N500.920 billion.
The distribution among the tiers of government was as follows: the Federal Government received N390.412 billion, State Governments got N403.403 billion, and Local Government Councils were allocated N293.816 billion. Additionally, N120.450 billion, representing 13% of mineral revenue, was distributed to oil-producing states as derivation revenue.
From the N284.716 billion distributable statutory revenue, the Federal Government received N112.148 billion, State Governments got N56.883 billion, and Local Government Councils were allocated N43.855 billion. Beneficiary states received N71.830 billion as 13% derivation revenue.
The distribution of the N466.457 billion VAT revenue saw the Federal Government receiving N69.969 billion, State Governments getting N233.229 billion, and Local Government Councils receiving N163.260 billion.
Of the N18.024 billion EMTL revenue shared by FAAC, the Federal Government received N2.704 billion, State Governments were allocated N9.012 billion, and Local Government Councils received N6.308 billion.
From the N438.884 billion exchange difference revenue, the Federal Government received N205.591 billion, State Governments were allocated N104.279 billion, and Local Government Councils received N80.394 billion. Beneficiary states received N48.620 billion as 13% derivation revenue.
The FAAC communiqué highlighted significant increases in Oil and Gas Royalties, Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), Electronic Money Transfer Levy (EMTL), and CET Levies. However, Import Duty and Value Added Tax (VAT) experienced notable decreases.
The balance in the Excess Crude Account (ECA) remained at $473,754.57 as of the end of April 2024.
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