Business
FAAC: FG, States, LGCs Share N1,143.210 Trillion From A Gross Total Of N2,324.792 Trillion For The Month Of May 2024
Joel Ajayi
The Federation Account Allocation Committee (FAAC), at its June 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total sum of N1,143.210 Trillion to the three tiers of government as Federation Allocation for the month of May, 2024 from a gross total of N2,324.792 Trillion.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference (ED), the Federal Government received N365.813 Billion, the States received N388.419 Billion, the Local Government Councils got N282.476 Billion, while the Oil Producing States received N106.502 Billion as Derivation, (13% of Mineral Revenue).
The sum of N76.647 Billion was given for the cost of collection, while N1104.935 Billion was allocated for Transfers Intervention and Refunds.
The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of May 2024, was N497.665 Billion as against N500.920 Billion distributed in the preceding month, resulting in a decrease of N3.255 Billion.
From that amount, the sum of N19.907 Billion was allocated for the cost of collection and the sum of N14.333 Billion given for Transfers, Intervention and Refunds. The remaining sum of N463.425 Billion was distributed to the three tiers of government, of which the Federal Government got N69.514 Billion, the States received N231.713 Billion, Local Government Councils got N162.199 Billion.
Accordingly, the Gross Statutory Revenue of N1,223.894 Trillion received for the month was lower than the sum of N1,233.498 Trillion received in the previous month of April 2024 by N9.604 Billion. From the stated amount, the sum of N56.109 Billion was allocated for the cost of collection and a total sum of N1,010.602 Trillion for Transfers, Intervention and Refunds.
The remaining balance of N157.183 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N61.010 Billion, States received N30.945 Billion, the sum of N23.857 Billion was allocated to LGCs and N41.371 Billion was given to Derivation Revenue (13% Mineral producing States).
Also, the sum of N15.777 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.272 Billion, States got N7.573 Billion, Local Government Councils received N5.301 Billion, while N0.631 Billion was allocated for Cost of Collection.
The Communique also disclosed the sum of N587.456 Billion from Exchange Difference, which was shared as follows: N80.000 Billion allocated Transfers, Intervention and Refunds, leaving a balance of N507.456 Billion of which the Federal Government received N233.017 Billion, States got N118.189 Billion, the sum of N91.119 Billion was allocated to Local Government Councils, N65.131 Billion was given for Derivation (13% of Mineral Revenue).
Companies Income Tax (CIT) and Petroleum Profit Tax (PPT), increased significantly, Import and Excise Duties, Royalty Crude and Gas, Customs External Tarrif levies (CET),
Electronic Money Transfer Levy (EMTL), and Value Added Tax (VAT) recorded considerably decreases.
According to the Communique, the total revenue distributable for the current month of May 2024, was drawn from Statutory Revenue of N157.183 Billion, Value Added Tax (VAT) of N463.425 Billion, N15.146 Billion from Electronic Money Transfer Levy (EMTL), and N507.456 Billion from Exchange Difference, bringing the total distributable amount for the month to N1,143.210 Trillion.
The balance in the Excess Crude Account (ECA) as at May 2024 stands at $473,754.57.
Business
Economy Stabilizing and Positioning for Growth, As FG Exits Ways and Means Borrowing Mechanism
Joel Ajayi
The Federal Government has disclosed that it has made significant strides in its economic reforms, well on its way to achieving a step-change in the revenues of the Federal government; closely in line with the budget for 2024. The Federal Government also announced its exit from the Ways and Means borrowing mechanism.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun stated this today in his office in Abuja during the half-year review Ministerial Press Briefing with the theme: *Economic Recovery and Growth: Progress and Prospects 2024.
He highlighted successes of the Government’s reforms, citing a projected budget deficit of 4% in the 2024 Fiscal Year. He also acknowledged the temporary hardships caused by the reforms but assured that Nigerians would soon benefit from the expected outcomes as the well coordinated economic policies of the Federal Government are beginning to yield results as shown in the slowing in the rate of growth of inflation, increasing foreign investments relative to the same period in the previous year, amongst other positive fiscal yardsticks that are being noted.
The Minister informed that one of the major priorities of the President Bola Ahmed Tinubu-led Administration in the immediate term is to reduce food prices and focus on providing all the necessary support to increase local food production, given the impact of high food prices on inflation. He noted that efforts are underway to achieve this goal.
Edun emphasized the President’s commitment to the welfare of ordinary Nigerians and the Government’s efforts to ensure transparency and accountability in its social protection initiatives including but not limited to the acceleration of the direct benefit transfer programme that has now been restarted following an initial pause of the programme to improve transparency in its delivery. He mentioned that, following the resumption of payments, over 600,000 households have already received this direct transfer this week.
As part of efforts to further improve foreign exchange liquidity and to showcase the resilience of the Nigerian financial system as economic stability takes root, the Minister also announced plans for the Federal Government to issue domestic USD denominated securities of up to US$500 million, in the first instance to attract investment from Diaspora Nigerians and Nigerians with savings held abroad.
Edun acknowledged the Supreme Court’s judgment on direct payment of federation allocations to Local Government Councils, and reiterated the Government’s commitment to implementing the judgement .
The Minister affirmed that with the outcome of the first half of 2024, indeed the Nigerian economy is turning the corner; and with macro-economic stability, the economy is being well positioned for sustained and inclusive growth that creates jobs, lifts millions out of poverty, and drives domestic and foreign investments that would improve the general well-being of the average Nigerian.
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