Nigeria’s Governments Receive Record-Breaking Revenue in July Allocation
July saw a significant increase in revenue in Nigeria, with the Federation Account Allocation Committee (FAAC) disbursing an astonishing N1.358.075 trillion to the country’s three tiers of government.
The allocation, which accounted for 51.7% of total gross revenue generated in July 2024 – amounting to N2,613.791 trillion – is a slight increase compared to the N1.354 trillion allocated in June.
The gross revenue itself was generated from various sources, including statutory revenue, value-added tax revenue, electronic money transfer levy, exchange differences, and mineral revenue. The FAAC revealed that statutory revenue garnered N161.593 billion, with N528.307 billion coming in the form of value-added tax revenue.
In distributing the revenue, the federal government received a tidy sum of N431.079 billion, a further N473.477 billion landed on the accounts of the states, with N343.703 billion going directly to the local government councils. Oil-producing states also received a significant share of 13%, totaling N109.816 billion in mineral revenue.
Analysts have noted that a noticeable increase in revenue was attributed to Nigeria’s efforts to diversify its economic growth, particularly in the non-oil sectors. This development is further corroborated by the fact that collection cost by revenue-generating agencies earned a sum of N99.756 billion.
Furthermore, N109.816 billion was allocated for transfer intervention and refunds. Overall, this allocation is encouraging for the country’s economic sustainability and serves as a testament to the federation’s growing economic resilience.
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