This article dives into the details of the N1.21 trillion federation account disbursement for May 2024, as approved by the Federation Accounts Allocation Committee (FAAC). It explores the revenue sources, allocations to different tiers of government, and comparisons to the previous month.
Key Takeaways:
- Total Allocation: N1.21 trillion was shared among the federal government, states, and local government areas (LGAs).
- Revenue Sources: The funds came from various sources, including statutory revenue (N284.72 billion), Value Added Tax (VAT) (N466.46 billion), electronic money transfer levy (N18.02 billion), and exchange difference revenue (N438.88 billion).
- Increase in Statutory Revenue: There was a significant increase (N216.28 billion) in statutory revenue compared to March 2024.
- Decrease in VAT Revenue: VAT revenue saw a slight decline (N48.78 billion) compared to March 2024.
- Allocation Breakdown:
- Federal Government: N390.41 billion (including N120.45 billion derivation revenue)
- State Governments: N403.40 billion (including N71.83 billion derivation revenue)
- Local Governments: N293.82 billion
Detailed Breakdown:
- Statutory Revenue: This includes revenue from oil sales, customs duties, and company income tax.
- Federal Government received N112.15 billion.
- States received N56.88 billion.
- LGAs received N43.86 billion.
- Value Added Tax (VAT): This tax is levied on the consumption of goods and services.
- Federal Government received N69.97 billion.
- States received N233.23 billion.
- LGAs received N163.26 billion.
- Electronic Money Transfer Levy: This is a new levy on electronic money transfers.
- Federal Government received N2.70 billion.
- States received N9.01 billion.
- LGAs received N6.31 billion.
- Exchange Difference Revenue: This arises from fluctuations in foreign exchange rates.
- Federal Government received N205.59 billion.
- States received N104.28 billion.
- LGAs received N80.39 billion.
Additional Notes:
- The Excess Crude Account (ECA) balance remains unchanged at $473.75 million.
- This is the latest in a series of monthly FAAC disbursements, highlighting the distribution of federal revenue among different government tiers.
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