The Federation Account Allocation Committee (FAAC) announced that it distributed a total of N1.65 trillion among Nigeria’s federal, state, and local governments as revenue allocation for May 2025. This figure represents a decrease of approximately N30 billion compared to the N1.68 trillion shared in April.
A statement issued on Wednesday by the Ministry of Finance confirmed the allocation following the conclusion of FAAC’s June 2025 meeting. The meeting was chaired by Finance Minister and Coordinating Minister of the Economy, Wale Edun, with the statement signed by Mohammed Manga, the ministry’s Director of Information and Public Relations.
The total distributable revenue for May was drawn from a gross revenue of N2.94 trillion. This included statutory revenue of N863.89 billion, value-added tax (VAT) proceeds of N691.71 billion, electronic money transfer levy (EMTL) at N27.66 billion, and N76.61 billion from exchange differences.
From the total distributable sum of N1.65 trillion, the federal government received N538 billion, states were allocated N577.84 billion, local governments got N419.96 billion, while oil-producing states were paid N124.07 billion as derivation revenue (representing 13 percent of mineral revenue).
The communique also noted that N111.90 billion was allocated for the cost of revenue collection, and N1.17 trillion was designated for transfers, interventions, and refunds.
VAT Revenue Surges by Over N100 Billion in May
The committee highlighted that VAT gross revenue rose sharply to N742.82 billion in May from N642.26 billion in April, reflecting an increase of N100.56 billion. Of this amount, N29.71 billion was set aside for cost of collection, and N21.39 billion was allocated for transfers, interventions, and refunds.
After deductions, the net VAT distributable amount stood at N691.71 billion, with the federal government receiving N103.75 billion, states N345.85 billion, and local governments N242.10 billion.
Overall, the gross statutory revenue for May was N2.09 trillion, up by N10.02 billion from April’s N2.08 trillion. From this amount, N81.04 billion covered collection costs, while N1.15 trillion was allotted for transfers, interventions, and refunds.
For the balance of N863.89 billion, allocations were as follows: the federal government got N393.51 billion, states received N199.59 billion, local governments were given N153.88 billion, and derivation revenue for mineral-producing states stood at N116.89 billion.
Breakdown of Other Revenue Sources
The electronic money transfer levy (EMTL) generated N28.82 billion, shared as N4.15 billion for the federal government, N13.83 billion for states, and N9.68 billion for local governments. A total of N1.15 billion from this was deducted as collection cost.
From the N76.61 billion earned through exchange differences, the federal government received N36.57 billion, states N18.55 billion, local governments N14.30 billion, and oil-producing states N7.17 billion.
The FAAC further observed significant increases in company income tax (CIT), VAT, and import duty revenues. Conversely, petroleum profit tax (PPT), customs excise tariffs (CET), oil and gas royalties, and EMTL collections declined, while excise duty saw only a marginal rise.
