• FAAC has distributed a total of N1.345 trillion as revenue accruing to the federal, state and local governments in June 2024
• Of the amount, states received N461.979 billion, bringing total FAAC revenue to states in H1 2024 to N2.597 trillion
• Nigerians are wondering why the FAAC revenue is not commensurate with the level of development in states

 On Tuesday, July 16, the Federation Accounts Allocation Committee (FAAC) shared a total of N1.354 trillion as June 2024 Federation Accounts Revenue to the federal, states and Local Governments in Nigeria. 

From the N1.354 trillion total distributable revenue, the Federal Government received a total sum of N459.776 billion, state governments received a total sum of N461.979 billion and the Local Government Councils received a total sum of N337.019 billion, according to the communiqué.

A total of N95.598 billion (13 percent of mineral revenue) was shared to the benefiting states as derivation revenue. 

The latest allocation brings the total revenue received by states in the first half of 2024 to N2.597 trillion, which is the net payments after repayments.

According to a statement by Bawa Mokwa, Director (Press and Public Relations) in the Office of the Accountant General of the Federation, the revenue was shared at the July 2024 meeting of the FAAC, held in Abuja and chaired by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. 

A communiqué issued by FAAC stated that the total revenue available in June 2024 was N2.483 trillion while the balance in the Excess Crude Account (ECA) was $473,754.57.

It added that the N1.354 trillion total distributable revenue comprised distributable statutory revenue of N142.514 billion, distributable Value Added Tax (VAT) revenue of N523.973 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.692 billion, exchange difference revenue of N472.192 billion and augmentation of N200 billion. 

The communiqué read, “Total deduction for cost of collection was N92.112 billion while total transfers, interventions and refunds was N1.037 trillion.   

“Gross statutory revenue of N1.432 trillion was received for the month of June 2024. This was higher than the sum of N1.223 trillion received in the month of May 2024 by N208.773 billion.  

“The gross revenue of N562.685 billion was available from the Value Added Tax (VAT) in June 2024. This was higher than the N497.665 billion available in the month of May 2024 by N65.020 billion.” 

The communiqué added that from the N142.514 billion distributable statutory revenue, the Federal Government received N48.952 billion, the state governments received N24.829 billion and the Local Government Councils received N19.142 billion. The sum of N49.591 billion (13 percent of mineral revenue) was shared to the benefiting states as derivation revenue. 

The Federal Government received N78.596 billion, the state governments received N261.987 billion and the Local Government Councils received N183.391 billion from the N523.973 billion distributable Value Added Tax (VAT) revenue.

A total sum of N2.354 billion was received by the Federal Government from the N15.692 billion Electronic Money Transfer Levy (EMTL). The state governments received N7.846 billion and the Local Government Councils received N5.492 billion.

From the N472.192 billion exchange difference revenue, the Federal Government received N224.514 billion, the state governments received N113.877 billion and the Local Government Councils received N87.794 billion. A total sum of N46.007 billion (13 percent of mineral revenue) was shared to the benefiting states as derivation revenue. 

On the N200 billion augmentation, the Federal Government received N105.360 billion, the state governments received N53.440 billion and the Local Government Councils received N41.200 billion.

According to the communiqué, in the month of June 2024, Companies Income Tax Oil (CIT) and Value Added Tax (VAT) increased significantly while Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased marginally. Royalty Crude, Petroleum Profit Tax (PPT), Rentals and CET Levies recorded considerable decreases.       

How much have regions and states received in H1 2024?

In the first six months of 2024, Nigeria’s 36 states have shared N2.597 trillion as revenue from the FAAC.

According to data from the National Bureau of Statistics (NBS) and FAAC as presented by BudgIt, Delta State received the highest amount of revenue of N260.7 billion, followed by Rivers State that got N197.2 billion. Akwa Ibom, Lagos and Bayelsa states received the third, fourth and fifth highest revenues of N179.1 billion, 161.1 billion and 157.7 billion, respectively between and January and June 2024.

From the rear, Osun State received the least amount of revenue of N40.0 billion within the period, followed by Cross River and Ekiti states with N40.1 billion and 42.3 billion, respectively.

South-South region received combined highest revenue within period

As analysed by geopolitical zones, states in the South-South region received combined highest revenue of N900.7 billion within the six-month period, with four of the six states in the region occupying the top five positions.

Within the period, Delta State received N260.7 billion, Rivers State got N197.2 billion, Akwa Ibom State got N179.1 billion and Bayelsa State received 157.7 billion. Edo State received N65.9 billion while Cross River State got the least FAAC revenue among states in the region of N40.1 billion.

States in the South-West zone received combined second-highest revenue of N419.9 billion in the first half of 2024. Lagos State led the region with N161.1 billion and received the fourth-largest revenue by state.

Lagos is followed by Oyo State having received N66.7 billion; Ondo got N65.4 billion, Osun received N44.4 billion, Ekiti got N42.3 billion while Ogun received N40.0 billion.

The North-West region took the third place as the region that received combined highest FAAC revenue within the period of N358.9 billion. A breakdown of the data showed that Kano State led the region having received N84.7 billion, followed by Katsina State that got N60.6 billion, while Jigawa State received N60.1 billion.

Kebbi State got N53.4 billion as FAAC revenue within the period, closely followed by Sokoto State that got N52.0, Zamfara State received N48.1 billion, while Kaduna State took the laggard’s position among states in the region, receiving N45.8 billion as revenue.

Some region’s revenue not up to N400 billion

The region that received a combined fourth highest FAAC revenue between and January and June 2024 is the North-East region with N302.1 billion. The region is led by Borno State having received N63.3 billion within the period, followed by Adamawa State, which got N50.6 billion while Taraba State got N49.9 billion.

Bauchi State got N47.8 billion while Yobe and Gombe states received N47.7 billion and N42.8 billion, respectively.

The North-Central region received combined fifth highest FAAC revenue of N294.8 billion in the first half of 2024. Benue State took the lead in the zone having received N59.1 billion, followed by Niger State with N53.6 billion and Nasarawa with N47.0 billion.

Plateau and Kogi States both received N45.4 billion as FAAC revenue within the period, while Kwara State got N44.3 billion.

The South-East region took the laggard’s position, having received the least combined FAAC revenue of N274.8 billion between January and June 2024. The region’s highest FAAC revenue earner is Anambra State with N65.4 billion, followed by Imo State that got N58.0 billion while Abia State received N54.2 billion.

Enugu State received N52.6 billion FAAC revenue, while Ebonyi State trailed behind, having gotten N44.6 billion within the six-month period.

Why do states’ development not commensurate with revenue allocation?

Reacting to the news of revenue accruable to states from FAAC in H1 2024, netizens questioned why developments in states are not commensurate to revenue received.

On X (formerly Twitter), @OluPeterJr said, “Delta youths are sleeping. See big big allocation and yet no improvement in d state. South south states are supposed to be the Dubais of Nigeria. Honestly, with all d monies been generated from oil, the reality and expectations don’t match at all.”

@Akinboy wrote, “This was the reason Atiku picked Ifeanyi Okowa as his V.P candidate. To fund the campaign (two laughing emojis)”

@Chuks4ryl said, “My state don suffer! No good road, some LGA headquarters have not had electricity from grid for over 5 yrs!”

@Echi_di_ime tweeted, “The highest government fraud is going on in Bayelsa.”

@cryptosingist said, “South south governors are bigger scams than the federal government.”

@Bt_ahmadi wrote, “The south south states are receiving so much allocations with nothing to show for it smh.”

@henrysco1 said, “With these much allocations to Delta, I wonder why the state airport is yet to receive much influx as Lagos and Abuja does.”

@chukatweet tweeted, “@Graysonluk52128 biko come and see. This should be your main worries. Talk to your people so they can hold Diri responsible. Your state not upto 2m people is receiving this allocation but not reflecting to the HDI and GDP/Capita of your people.”

@okey_echezona wrote, “Anambra is even collecting more than Abia in allocation and yet so much shortfall in infrastructure. This solution is not solutioning oh!”

LGs should manage their funds, Supreme Court rules in LG autonomy suit

Meanwhile, TheRadar had reported that the Supreme Court of Nigeria ruled that the 774 Local Governments Councils (LGs) be allowed to receive and manage their funds themselves.

In a lead judgement delivered by Justice Emmanuel Agim on Thursday, July 12, the seven-man panel unanimously said it is unconstitutional for state governors to hold funds allocated for local government administrations.