The Federation Account Allocation Committee (FAAC) has disbursed a total of N1.65 trillion to the three tiers of government—federal, state, and local—in May 2025, a slight decrease from the N1.68 trillion shared in April.
This was disclosed in a communique issued at the end of FAAC’s June meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The meeting, held in Abuja, was confirmed through a statement signed by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance.
The N1.65 trillion was drawn from a gross revenue of N2.94 trillion, comprising statutory revenue of N863.89 billion, N691.71 billion from Value Added Tax (VAT), N27.66 billion from Electronic Money Transfer Levy (EMTL), and N76.61 billion from exchange difference.
From the shared revenue, the Federal Government received N538 billion, states got N577.84 billion, and local governments received N419.96 billion. Additionally, N124.07 billion was paid to oil-producing states as 13% derivation revenue.
A total of N111.90 billion was deducted as the cost of revenue collection, while N1.17 trillion was allocated for transfers, interventions, and refunds.
In a notable increase, FAAC reported that VAT revenue in May stood at N742.82 billion, up from N642.26 billion in April—representing an increase of over N100 billion.
From the VAT collection, N29.71 billion was earmarked for collection costs and N21.39 billion for interventions and refunds. The net distributable VAT of N691.71 billion was shared as follows: the Federal Government received N103.75 billion, states got N345.85 billion, and local governments received N242.10 billion.
On statutory revenue, FAAC revealed that the total gross was N2.09 trillion, slightly higher than the N2.08 trillion recorded in the previous month.
Out of the N863.89 billion distributable statutory revenue, the Federal Government received N393.51 billion, states got N199.59 billion, local governments received N153.88 billion, and oil-producing states received N116.89 billion.
The Electronic Money Transfer Levy (EMTL) generated N28.82 billion. From this amount, the Federal Government got N4.15 billion, states received N13.83 billion, and local governments were allocated N9.68 billion, with N1.15 billion set aside for collection costs.
In addition, N76.61 billion realized from exchange gains was shared as follows: N36.57 billion to the Federal Government, N18.55 billion to states, N14.30 billion to local governments, and N7.17 billion to oil-producing states as derivation.
The committee observed a significant increase in revenue from Company Income Tax (CIT), VAT, and import duty. However, there were declines in petroleum profit tax (PPT), CET levies, oil and gas royalties, and EMTL. Excise duty experienced only a marginal rise.
FAAC’s monthly allocation remains a key indicator of the country’s revenue generation and fiscal health, impacting public service delivery across all tiers of government.
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