The Federal Government, 36 states and 774 local government areas shared a total of N1.659 trillion as revenue allocation for the month of May 2025, the Federation Account Allocation Committee (FAAC) said on Wednesday.
The disbursement was confirmed in a communiqué issued at the end of FAAC’s June meeting in Abuja. The revenue was drawn from statutory allocations, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange difference income.
According to the document signed by Bawa Mokwa, Director of Press and Public Relations at the Federal Ministry of Finance, the gross revenue for May stood at N2.942 trillion. Deductions included N111.91 billion for the cost of collection and N1.171 trillion for transfers, refunds, and interventions, leaving N1.659 trillion for distribution.
How the Money Was Shared
Out of the total distributable amount, the Federal Government received N538.004 billion, while the state governments got N577.841 billion and the 774 LGAs shared N419.968 billion. In addition, oil-producing states received N124.076 billion as 13 per cent derivation.
Breakdown of allocations by source:
Statutory Revenue: N863.895 billion
FG: N393.518 billion
States: N199.598 billion
LGAs: N153.881 billion
Derivation to oil-producing states: N116.898 billion
VAT Pool (N691.714 billion):
FG: N103.757 billion
States: N345.857 billion
LGAs: N242.100 billion
EMTL (N27.667 billion):
FG: N4.150 billion
States: N13.833 billion
LGAs: N9.683 billion
Exchange Difference (N76.614 billion):
FG: N36.579 billion
States: N18.553 billion
LGAs: N14.304 billion
Derivation: N7.178 billion
Revenue Trends
The committee reported a mixed trend in revenue performance. Receipts from Companies Income Tax (CIT), VAT and Import Duty increased, while inflows from Petroleum Profit Tax (PPT), Oil and Gas Royalties, CET levies, and EMTL recorded declines. Excise Duty saw a marginal rise.
“Revenue performance is showing encouraging signs in areas like VAT and corporate taxes, but there’s a clear decline in some oil and gas-based inflows,” Mokwa stated.
The report highlighted the continued volatility in Nigeria’s revenue sources, underlining the urgent need to diversify the economy and reduce dependence on oil earnings.
💬 Discussion