The Federations Accounts Revenue has experienced an increase of over N200 billion in July (revenue generated in June) as Against June allocation(revenue generated in May and shared in June).

A total sum of N1,354.371,000 trillion June 2024 Federation Accounts Revenue when compared to May 2024 which stood at N1, 143,210,000 trillion, signaling an increase of N211,161,000 billion.

Though the communique is silent on the component of the Federations revenue that recorded a boost, a check reveals that it might not be unconnected with an augmentation of about N200 billion injected into the total revenue.

The revenue was shared at the July 2024 meeting of the Federation Accounts Allocation Committee (FAAC), held in Abuja and chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

The communiqué issued by the Federation Accounts Allocation Committee (FAAC) stated that the N1,354.371,000 trillion total distributable revenue comprised distributable statutory revenue of N 142,514 billion, distributable Value Added Tax (VAT) revenue of N523,973 billion, Electronic Money Transfer Levy (EMTL) revenue of N15,692 billion, Exchange Difference revenue of N472,192 billion and Augmentation of N200,000 billion.

Total revenue of N2,483.890 billion was available in the month of June 2024. Total deduction for the cost of collection was N92.112 billion while total transfers, interventions and refunds was N1,037,407,000 trillion.

Gross statutory revenue of N1,432.667 billion was received for the month of June 2024. This was higher than the sum of N1,223,894 trillion received in the month of May 2024 by N208,773 billion.

The gross revenue of N562,685 billion was available from the Value Added Tax (VAT) in June 2024. This was higher than the N497,665 billion available in the month of May 2024 by N65,020 billion.

The communiqué stated that from the N1,354,371 trillion total distributable revenue, the Federal Government received a total sum of N459,776 billion, the State Governments received total sum of N461,979 billion and the Local Government Councils received total sum of N337,019 billion.

A total sum of N95,598 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.

On the N142,514 billion distributable statutory revenue, the communiqué stated that the Federal Government received N48,952 billion, the State Governments received N24,829 billion and the Local Government Councils received N19,142 billion. The sum of N49,591 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.

The Federal Government received N78,596 billion, the State Governments received N261,987 billion and the Local Government Councils received N183,391 billion from the N523,973 billion distributable Value Added Tax (VAT) revenue.

A total sum of N2.354 billion was received by the Federal Government from the N15.692 billion Electronic Money Transfer Levy (EMTL). The State Governments received N7.846 billion and the Local Government Councils received N5.492 billion.

From the N472.192 billion Exchange Difference revenue, the Federal Government received N224.514 billion, the State Governments received N113.877 billion and the Local Government Councils received N87.794 billion. A total sum of N46.007 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.

On the N200.000 billion augmentation, the Federal Government received N105.360 billion, the State Governments received N53.440 billion and the Local Government Councils received N41.200 billion.

According to the communiqué, in the month of June 2024, Companies Income Tax (CIT) and Value Added Tax (VAT) increased significantly while Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased marginally. Royalty Crude, Petroleum Profit Tax (PPT), Rentals and CET Levies recorded considerable decreases.

Meanwhile, the balance in the Excess Crude Account has not increased since the beginning of the year, at $473,754.57.
The ECA has suffered stagnation since president Muhammad Buhari made a withdrawal of $1 billion for the purchase of Military equipment.