The Nigerian government distributed approximately N12.45 trillion among the federal government, 36 states, and 774 local governments in the first six months of 2024. This represented a significant increase of 139.4% compared to the N5.2 trillion shared during the same period in 2023.
Monthly Revenue Distribution
* January: N1.67 trillion
* February: N2.07 trillion
* March: N2.33 trillion
* April: N1.87 trillion
* May: N2.19 trillion
* June: N2.32 trillion
Derivation Fund for Oil-Producing States
Oil-producing states received an additional N626.33 billion as 13% derivation fund. This included:
* Delta: N166.24 billion
* Rivers: N120.45 billion
* Akwa-Ibom: N106.50 billion
* Others: N233.14 billion
Sources of Revenue
* Statutory Account: N6.14 trillion
* Exchange Gain: N2.45 trillion
* Electronic Money Transfer Levy (EMTL): N92.9 billion
* Value Added Tax (VAT): N2.73 trillion...Read Full Article [Click Here>]
FAAC Revenue-Sharing Formula
The Federal Account Allocation Committee (FAAC) distributes revenue using the following formula:
* Federal Government: 52.68%
* States: 26.72%
* Local Governments: 20.60%
Implications
* The increased revenue distribution has provided a much-needed financial boost to sub-national governments, many of which rely heavily on FAAC funds.
* The devaluation of the Naira has contributed to higher revenue availability for states due to exchange gains.
* The 13% derivation fund continues to provide significant support to oil-producing areas.
* The Petroleum Industry Act (PIA) allocates an additional 3% from oil company operating expenses to host communities.
Source: ThisDay
