FAAC shared ₦1.659 trillion among federal, state, and local governments for May 2025.
The disbursement was buoyed by rising VAT and import revenues despite oil income drops.
The Federation Account Allocation Committee (FAAC) has disbursed a total of ₦1.659 trillion to the federal, state, and local governments for May 2025, according to a statement released by the Office of the Accountant General of the Federation (OAGF) on Wednesday, June 19, 2025.
This distribution followed the monthly FAAC meeting held earlier in Abuja on Tuesday, June 18, 2025, during which members confirmed that the shared amount comprised various revenue streams: ₦863.895 billion in distributable statutory revenue, ₦691.714 billion from Value Added Tax (VAT), ₦27.667 billion from Electronic Money Transfer Levy (EMTL), and ₦76.614 billion from exchange rate difference revenues.
According to the communiqué released at the end of the meeting, the total gross revenue available in May 2025 stood at ₦2.942 trillion. After deducting ₦111.908 billion for the cost of collection, statutory transfers, and refunds totaling ₦1.171 trillion, the distributable revenue came to ₦1.659 trillion, which was shared among the three tiers of government.
The document also clarified that gross revenue refers to the total funds collected from all revenue sources before any deductions. This includes receipts from taxes, levies, VAT, royalties, customs duties, and more.
The gross statutory revenue received in May 2025 was ₦2.094 trillion, reflecting a slight increase of ₦10.023 billion from the ₦2.084 trillion recorded in April 2025.
VAT, on the other hand, experienced a notable surge. Gross VAT revenue for May reached ₦742.820 billion, which was ₦100.555 billion higher than the ₦642.265 billion collected in April 2025.
From the total shared amount of ₦1.659 trillion:
- The federal government received ₦538.004 billion,
- The 36 states got ₦577.841 billion, and
- Local government councils were allocated ₦419.968 billion.
An additional ₦124.076 billion, representing 13% of mineral revenue, was distributed to oil-producing states as derivation revenue.
Breaking down the ₦863.895 billion in statutory revenue:
- Federal Government: ₦393.518 billion
- State Governments: ₦199.598 billion
- Local Governments: ₦153.881 billion
- Derivation to states: ₦116.898 billion
The VAT distribution was as follows:
- Federal Government: ₦103.757 billion
- States: ₦345.857 billion
- Local Governments: ₦242.100 billion
From the EMTL revenue of ₦27.667 billion:
- Federal Government: ₦4.150 billion
- States: ₦13.833 billion
- Local Governments: ₦9.683 billion
The ₦76.614 billion from exchange difference was shared thus:
- Federal Government: ₦36.579 billion
- States: ₦18.553 billion
- Local Governments: ₦14.304 billion
- Derivation to oil-producing states: ₦7.178 billion
The communiqué also provided insight into the performance of various revenue sources during the period under review. It noted that Companies Income Tax (CIT), VAT, and Import Duty recorded significant increases, whereas CET Levies, Petroleum Profit Tax (PPT), Oil and Gas Royalties, and EMTL saw declines. Excise Duty, meanwhile, recorded only a marginal improvement.
As Nigeria prepares its mid-year fiscal reports, the May allocation gives a snapshot of how rising VAT and import revenues are helping to sustain government funding in a post-subsidy economy, despite volatility in oil-related income.
