Overview of FAAC’s July Allocation
In July 2024, the Federation Account Allocation Committee (FAAC) disbursed a significant sum of N1.36 trillion across Nigeria’s three government tiers. This allocation came from a gross total revenue of N2.61 trillion collected for the month, as detailed in a recent meeting chaired by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
Breakdown of Revenue Distribution
According to a statement from Mohammed Manga, the Finance Ministry’s Director of Information and Public Relations, the Federal Government received N431.1 billion, states received N473.5 billion, and local government councils were allocated N343.7 billion. This distribution reflects the latest revenue generation efforts which include significant increases in Oil and Gas Royalty, Petroleum Profit Tax, and Value Added Tax.
Revenue Increases and Decreases
The revenue collection for July saw an overall increase, with Value Added Tax alone rising to N625.33 billion from N562.69 billion the previous month—an increase of N62.64 billion. However, Company Income Tax saw a reduction, whereas Excise Duties only saw a marginal increase.
Specific Allocations and Interventions
FAAC’s statement also detailed the allocations from other revenue sources, including a solid mineral revenue of N13.647 billion and Electronic Money Transfer Levy which brought in N19.6 billion. Notably, the Oil Producing States received N109.816 billion as Derivation (13% of Mineral Revenue), underlining the ongoing commitment to support regions contributing significantly to the national revenue.
Impact of Revenue Distribution on National Economy
The substantial revenue allocation is expected to bolster the economic activities across federal, state, and local levels. The continuous inflow of funds is crucial as it supports various governmental and developmental initiatives, aiming to stabilize and grow the nation’s economy amidst global economic fluctuations.
Future Projections and Ministerial Commendation
During the FAAC meeting, Minister Edun lauded the committee’s efforts and emphasized the importance of these allocations in supporting the Federal Government’s ambitious economic transformation plans. He also praised the recent implementation of the National Minimum Wage Act, highlighting its expected positive impact on the welfare of Nigerians.
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