Written by SpringnewsNG – June 19, 2025

Nigeria’s Federation Account Allocation Committee (FAAC) has distributed a total of ₦1.65 trillion among the federal, state, and local governments for the month of May 2025, reflecting a slight revenue decline compared to the ₦1.68 trillion allocated in April.

This update was confirmed in an official communiqué released on Wednesday by the Federal Ministry of Finance following the June FAAC meeting, chaired by Wale Edun, Minister of Finance and Coordinating Minister of the Economy. The statement was signed by Mohammed Manga, Director of Information and Public Relations.

According to the ministry, the funds distributed were derived from total gross revenue collections of ₦2.94 trillion in May. From this amount, ₦1.65 trillion was deemed distributable among the three tiers of government.

Revenue Breakdown for May 2025

The shared ₦1.65 trillion consisted of:

• Statutory revenue: ₦863.89 billion
• Value Added Tax (VAT): ₦691.71 billion
• Electronic Money Transfer Levy (EMTL): ₦27.66 billion
• Exchange rate differences: ₦76.61 billion

The federal government received the highest allocation at ₦538 billion, while state governments collectively received ₦577.84 billion. Local government areas were allocated ₦419.96 billion. In addition, oil-producing states received ₦124.07 billion as 13% derivation revenue, as stipulated by the Nigerian Constitution.

Also, ₦111.90 billion was set aside for collection costs, while ₦1.17 trillion went towards transfers, interventions, and refunds.

VAT Collections Surge by Over ₦100 Billion

FAAC reported that gross VAT revenue for May climbed to ₦742.82 billion, a significant increase from ₦642.26 billion in April—reflecting a ₦100.56 billion growth. After deducting ₦29.71 billion for collection costs and ₦21.39 billion for interventions, ₦691.71 billion was available for sharing.

• Federal Government: ₦103.75 billion
• State Governments: ₦345.85 billion
• Local Governments: ₦242.10 billion

Statutory Revenue and Exchange Rate Differences

Nigeria’s gross statutory revenue stood at ₦2.09 trillion, slightly higher than the ₦2.08 trillion recorded in April. After necessary deductions, ₦863.89 billion was shared:

• Federal Government: ₦393.51 billion
• States: ₦199.59 billion
• LGAs: ₦153.88 billion
• Oil-producing states: ₦116.89 billion

From the Electronic Money Transfer Levy, ₦28.82 billion was realized. After deducting ₦1.15 billion for collection costs, the remainder was distributed as follows:

• Federal Government: ₦4.15 billion
• States: ₦13.83 billion
• LGAs: ₦9.68 billion

Exchange rate gains contributed an additional ₦76.61 billion to the allocation pool, distributed as:

• Federal Government: ₦36.57 billion
• States: ₦18.55 billion
• LGAs: ₦14.30 billion
• Oil-producing states: ₦7.17 billion