The Federal Government, States, and Local Government Councils in Nigeria have shared a total sum of N1.354 trillion as federation accounts revenue for June 2024. This revenue sharing exercise marks the first of its kind since the Supreme Court granted financial autonomy to local governments in the country.
According to a communiqué issued by the Federation Accounts Allocation Committee (FAAC) and signed by the Accountant General of the Federation, Bawa Mokwa, the N1.354 trillion total distributable revenue comprised statutory revenue, Value Added Tax (VAT) revenue, Electronic Money Transfer Levy (EMTL) revenue, Exchange Difference revenue, and augmentation.
The breakdown of the revenue sharing shows that the Federal Government received a total sum of N459.776 billion, while the State Governments received N461.979 billion, and the Local Government Councils received N337.019 billion. A total sum of N95.598 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.
The gross statutory revenue of N1,432.667 billion received in June 2024 was higher than the N1,223.894 billion received in May 2024 by N208.773 billion. Similarly, the gross revenue of N562.685 billion available from Value Added Tax (VAT) in June 2024 was higher than the N497.665 billion available in May 2024 by N65.020 billion.
The Federal Government received N48.952 billion from the distributable statutory revenue, while 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 with the benefiting States as derivation revenue.
The Federal Government received N78.596 billion from the distributable Value Added Tax (VAT) revenue, while the State Governments received N261.987 billion, and the Local Government Councils received N183.391 billion. The Federal Government also received N2.354 billion from the Electronic Money Transfer Levy (EMTL) revenue, while the State Governments received N7.846 billion, and the Local Government Councils received N5.492 billion.
The Exchange Difference revenue of N472.192 billion was shared among the three tiers of government, with the Federal Government receiving N224.514 billion, the State Governments receiving N113.877 billion, and the Local Government Councils receiving N87.794 billion. A total sum of N46.007 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.
Finally, the Federal Government received N105.360 billion from the N200 billion augmentation, while the State Governments received N53.440 billion, and the Local Government Councils received N41.200 billion.
This revenue sharing exercise demonstrates the commitment of the Federal Government to ensure that resources are distributed equitably among the three tiers of government, in line with the principles of fiscal federalism.
