The Federation Account Allocation Committee (FAAC) has distributed a total of N1.659 trillion as Federation Account revenue for May 2025.
This represents a decrease from the N1.681 trillion shared in April 2025, marking a decline of N22 billion or approximately 1.31%.
According to a press statement on Wednesday by the Director (Press and Public Relations) at the Office of the Accountant General of the Federation, Bawa Mokwa, the disbursement was made during the FAAC meeting held in Abuja in June 2025.
The total revenue was shared among the Federal Government, 36 state governments, and 774 local government councils (LGCs) in line with the usual revenue-sharing formula.
Revenue breakdown and allocation
The total distributable revenue for May 2025 consisted of N863.895 billion in distributable statutory revenue, N691.714 billion in Value Added Tax (VAT) revenue, N27.667 billion from the Electronic Money Transfer Levy (EMTL), and N76.614 billion from Exchange Difference revenue.
- The total gross revenue for May 2025 stood at N2.942 trillion, an increase from April’s N2.084 trillion. However, after deductions for cost of collection (N111.908 billion) and transfers, interventions, and refunds (N1.171 trillion), the distributable revenue came to N1.659 trillion.
- The statutory revenue, which forms the bulk of the distributable revenue, increased slightly. Gross statutory revenue for May 2025 amounted to N2.094 trillion, an increase of N10.023 billion from the N2.084 trillion in April 2025. Similarly, VAT revenue rose by N100.555 billion from N642.265 billion in April to N742.820 billion in May.
- The disbursement of the N1.659 trillion was shared as follows: the Federal Government received N538.004 billion, State Governments received N577.841 billion, and Local Government Councils (LGCs) were allocated N419.968 billion. Additionally, N124.076 billion, representing 13% of mineral revenue, was allocated to the benefiting states as derivation revenue.
- The N863.895 billion in distributable statutory revenue was divided into N393.518 billion for the Federal Government, N199.598 billion for State Governments, and N153.881 billion for Local Government Councils. Another N116.898 billion, representing 13% of mineral revenue, was shared among the benefiting states as derivation revenue.
- VAT revenue totalling N691.714 billion was distributed, with N103.757 billion going to the Federal Government, N345.857 billion to the State Governments, and N242.100 billion to Local Government Councils.
- The N27.667 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N4.150 billion, the State Governments received N13.833 billion, and the Local Government Councils received N9.683 billion.
- From the N76.614 billion in Exchange Difference revenue, the Federal Government received N36.579 billion, State Governments received N18.553 billion, and Local Government Councils received N14.304 billion. Additionally, N7.178 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.
Performance of key revenue streams
May 2025 saw significant increases in revenue from Companies Income Tax (CIT), VAT, and Import Duty. However, several other levies experienced a decline. CET Levies, Petroleum Profit Tax (PPT), Oil and Gas Royalty, and Electronic Money Transfer Levy (EMTL) all saw decreases. Excise Duty showed only a marginal increase during the period.
While the decline in total revenue between April and May 2025 is notable, the overall figures highlight the continued efforts to manage and distribute national revenue effectively. Despite fluctuations in key revenue streams, the allocation to the Federal Government, State Governments, and Local Government Councils ensures a steady flow of funds to support government operations at various levels.
