By Jemimah Wellington, JKNewsMedia Reporter
THE FEDERATION Account Allocation Committee (FAAC) has distributed a total of N1.659 trillion to Nigeria’s three tiers of government as allocation for May 2025, drawn from a gross revenue inflow of N2.942 trillion.
From the total distributable amount, the Federal Government received N538.004 billion, the State Governments collected N577.841 billion, and the Local Government Councils got N419.968 billion.
Oil-producing states were allocated N124.076 billion as derivation revenue, representing 13 percent of mineral proceeds.
FAAC disclosed that N111.908 billion was set aside for the cost of revenue collection, while N1.171 trillion was earmarked for transfers, interventions and refunds.
According to the official communique issued after the June 2025 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, Value Added Tax (VAT) for the reporting month recorded a notable surge.
Gross VAT revenue rose to N742.820 billion in May, a N100.555 billion increase from April’s N642.265 billion.
From the May figure, N29.713 billion was allocated for collection costs, N21.393 billion for transfers and refunds, and the balance of N691.714 billion distributed across all levels of government.
The Federal Government received N103.757 billion, the States got N345.857 billion, and Local Governments were allocated N242.100 billion.
Statutory revenue for May stood at N2.094 trillion, slightly higher than April’s figure by N10.023 billion.
After deducting N81.042 billion for collection costs and N1.149 trillion for interventions and refunds, the remaining N863.895 billion was shared: N393.518 billion to the Federal Government, N199.598 billion to the States, N153.881 billion to Local Governments, and N116.898 billion allocated as derivation to oil-producing states.
Electronic Money Transfer Levy (EMTL) contributed N28.820 billion, shared as follows: Federal Government received N4.150 billion, States got N13.833 billion, Local Governments collected N9.683 billion, and N1.153 billion was allocated as collection cost.
Additionally, N76.614 billion from Exchange Difference was disbursed: the Federal Government got N36.579 billion, States received N18.553 billion, Local Governments took N14.304 billion, and N7.178 billion was allocated to oil-producing states.
FAAC also noted increases in revenue inflows from Companies Income Tax (CIT), VAT, and Import Duty. Conversely, declines were recorded in Petroleum Profit Tax (PPT), Oil and Gas Royalties, CET levies, and EMTL. Excise Duty rose only marginally.
Total distributable revenue for May 2025 comprised N863.895 billion from statutory sources, N691.714 billion from VAT, N27.667 billion from EMTL, and N76.614 billion from Exchange Difference, bringing the total to N1.659 trillion.
This reflects a reduction of N30 billion from the N1.689 trillion distributed in April, it was said.
