FAAC Disburses N1.2 Trillion in August Revenue to Nigerian Government Tiers
The Federal Accounts Allocation Committee (FAAC) has announced the distribution of N1.2 trillion in revenue generated in August 2024 to the Federal Government, states, and local government councils across Nigeria. This was confirmed during the September 2024 FAAC meeting held in Abuja, according to a statement released by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, on Tuesday.
The disbursement reflects a significant 11% decline, representing N155 billion less than the N1.358 trillion shared in July, highlighting the fiscal pressures facing the nation amid ongoing economic challenges.
“A total sum of N1.203 trillion of August 2024 Federation Accounts Revenue has been shared to the Federal Government, states, and Local Government councils,” the statement revealed.
The breakdown of the revenue includes N186.636 billion from statutory revenue, N533.895 billion from Value Added Tax (VAT), N15.02 billion from the Electronic Money Transfer Levy, and N468.25 billion from Exchange Difference revenue.
Despite the allocation, FAAC noted that a total of N2.278 trillion was available in August 2024, underscoring the gap between available and distributable revenue.
From the total distributable funds, the Federal Government received N374.93 billion, while state governments were allocated N422.86 billion. Local Government councils received N306.53 billion, and N99.47 billion, or 13% of mineral revenue, was shared with qualifying states as derivation revenue.
The communique also detailed the overall revenue streams, with gross statutory revenue for August 2024 at N1.22 trillion, down from N1.39 trillion in July, a decrease of N165.99 billion. Additionally, VAT revenue stood at N573.34 billion in August, lower than the N625.33 billion recorded in July, marking a shortfall of N51.99 billion.
This reduction in revenue distribution occurs at a time of heightened fiscal strain across all levels of government, as inflation, exchange rate fluctuations, and reduced oil revenues continue to weigh heavily on the nation’s economy.
