The Federation Account Allocation Committee (FAAC) disbursed a total of N2.68tn to the three tiers of government in July 2024, from revenue generated in June, according to a report by the Nigeria Bureau of Statistics (NBS). This marks a significant increase from the previous month’s disbursement of N1.36tn.

The disbursement breakdown included N1.43tn from the Statutory Account, N472.19bn from May’s exchange gain, N16.35bn from the Electronic Money Transfer Levy, N200bn from the Non-Oil Excess Account, and N562.69bn from Value Added Tax (VAT).

In the FAAC meeting held in August 2024, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, it was revealed that the Federal Government received N459.78bn, while state governments got N461.98bn, and local government councils received N337.02bn. Additionally, N95.60bn was allocated to oil-producing states as part of the 13% derivation fund.

Revenue-generating agencies were also compensated, with the Nigeria Customs Service receiving N20.87bn, the Federal Inland Revenue Service N55.13bn, and N16.10bn going to the Nigerian Upstream Development Petroleum Regulatory Commission for revenue collection costs.

A detailed breakdown of the Federal Government’s share showed N319.49bn went to the consolidated revenue account, N7.19bn for derivation and ecology, N3.60bn for the stabilization fund, N12.08bn for natural resources development, and N12.34bn for the Federal Capital Territory.

This disbursement comes amid ongoing efforts by the FAAC to ensure equitable distribution of revenue generated across the federation. Last week, FAAC announced the distribution of N1.2tn in August 2024 to the federal, state, and local governments.

This substantial revenue distribution will help drive economic activities across all levels of government, providing much-needed resources for development projects, especially in critical sectors such as infrastructure, health, and education.