By Barth Ikiebe in Abuja.
The Federation Account Allocation Committee (FAAC), has shared a total sum of N1.659 Trillion to the three tiers of government as Federation Allocation for the month of May 2025 from a gross total of N2.942 Trillion.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Exchange Difference, the Federal Government received N538.004 Billion, the States received N577.841Billion, the Local Government Councils got N419.968 Billion, while the Oil Producing States received N124.076 Billion as Derivation, (13% of Mineral Revenue).
The sum of N111.908 Billion was given for the cost of collection, while N1.171 Trillion was allocated for Transfers Intervention and Refunds.
A Communique issued by the Federation Account Allocation Committee (FAAC) at the end of its meeting chaired by the Minister of Finance and Coordinating Economy, Mr Wale Edun, indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of May 2025, was N742.820 Billion as against N642.265 Billion distributed in the proceeding month, resulting in an increase of N100.555 Billion.
From that amount, the sum of N29.713 Billion was allocated for the cost of collection and the sum of N21.393 Billion given for Transfers, Intervention and Refunds. The remaining sum of N691.714 Billion was distributed to the three tiers of government, of which the Federal Government got N103.757 Billion, the States received N345.857 Billion and Local Government Councils got N242.100 Billion.
Accordingly, the Gross Statutory Revenue of N2.094 Trillion received for the month was higher than the sum of N2.084 Trillion received in the previous month by N10.023 Billion. From the stated amount, the sum of N81.042 Billion was allocated for the cost of collection and a total sum of N1.149 Trillion for Transfers, Intervention and Refunds.
The remaining balance of N863.895 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N393.518 Billion, States received N199.598 Billion, the sum of N153.881 Billion was allocated to LGCs and N116.898 Billion was given to Derivation Revenue (13% Mineral producing States).
Also, the sum of N28.820 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N4.150 Billion, States got N13.833 Billion, Local Government Councils received N9.683 Billion, while N1.153 Billion was allocated for Cost of Collection.
The Communique also mentioned the sum of N76.614 Billion from Exchange Difference which was distributed to the three tiers of Government as follows: Federal government got N36.579 Billion, the State received N18.553 Billion, the LGC’s got N14.304 Billion, while the Oil producing States received N7.178 Billion.
Companies Income Tax (CIT), Value Added Tax (VAT) and Import Duty increased significantly, while Petroleum Profit Tax (PPT), CET levies, Oil and Gas Royalty and Electronic Money Transfer Levy (EMTL) recorded decreases. Excise Duty increased only marginally.
According to the Communique, the total revenue distributable for the current month of May 2025, was drawn from Statutory Revenue of N863.895 Billion, Value Added Tax (VAT) of N691.714 Billion, N27.667 Billion from Electronic Money Transfer Levy (EMTL) and the sum of N76.614 Billion from Exchange Difference, bringing the total distributable amount for the month to N1.659 Trillion.
Earlier in his opening remarks, the Finance and Coordinating Minister of the Economy, Mr. Wale Edun emphasized the importance of transparency, accountability, and prudent fiscal management in revenue allocation processes.
He commended the FAAC members’ commitment in the realization of the policy objectives of government,
stating that the collective efforts aim to drive economic growth, stability, and development across all regions, ensuring resources are utilized effectively for the benefit of all Nigerians.
