July Revenue Allocation: N2 Trillion Distributed Among Nigeria’s Three Government Levels
In July, Nigeria’s federal, state, and local governments collectively received a total of N2 trillion as part of the monthly revenue allocation, according to official disclosures.
Overview of July’s Federation Account Allocation
Muhammed Manga, Director of Information and Public Relations at the Ministry of Finance, announced the figures following the Federation Account Allocation Committee (FAAC) meeting chaired by Finance Minister and Coordinating Minister of the Economy, Wale Edun. The total gross revenue for the month stood at N3.83 trillion, from which N2 trillion was apportioned among the three tiers of government.
Breakdown of Revenue Sources
The allocation pool comprised statutory revenues, Value-Added Tax (VAT) proceeds, Electronic Money Transfer (EMT) levies, and exchange rate differentials. These components collectively contributed to the overall revenue shared.
Distribution Among Federal, State, and Local Governments
The federal government’s share amounted to N735.08 billion, while the states received N660.34 billion. Local government councils were allocated N485.03 billion. Additionally, oil-producing states were granted N120.35 billion as derivation revenue, representing 13% of mineral revenue, supporting their resource management and development efforts.
Value-Added Tax (VAT) Performance and Allocation
July’s VAT revenue totaled N687.94 billion, marking a slight increase of N9.77 billion compared to June’s N678.16 billion. From this amount, N27.51 billion was deducted to cover collection costs, and N19.81 billion was allocated for transfers, interventions, and refunds. The remaining N640.61 billion was distributed among the government tiers: the federal government received N96.09 billion, states were allocated N320.31 billion, and local governments obtained N224.21 billion.
Context and Implications
This steady inflow of revenue highlights the ongoing fiscal dynamics within Nigeria’s federal system. The allocation ensures that all levels of government have the necessary funds to execute their responsibilities, from infrastructure development to public service delivery. Notably, the increase in VAT collections reflects improved tax compliance and economic activity, which is crucial for sustaining government operations amid fluctuating oil revenues.
For comparison, in June, the total revenue shared was N1.82 trillion, indicating a positive growth trend in July’s allocations. This upward movement is essential for meeting the country’s budgetary needs and supporting socio-economic programs across Nigeria.
0 Comments