The Federation Account Allocation Committee (FAAC), during its June meeting, on Wednesday, distributed a total of ₦1.659 trillion to the Federal Government, 36 states, and 774 local government councils as revenue allocation for May 2025.
This was released in a communique issued at the end of the meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
According to the communique, the allocation, covers gross statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange rate differentials, and was drawn from a gross revenue pool of ₦2.942 trillion.
The breakdown of the allocation indicates that from the ₦1.659 trillion distributable revenue reveals that:
The Federal Government received ₦538.004 billion
The State Governments got ₦577.841 billion
Local government councils were allocated ₦419.968 billion
Oil-producing states received ₦124.076 billion as 13% derivation.
Statutory Revenue Performance
Gross statutory revenue stood at ₦2.094 trillion, marginally higher than ₦2.084 trillion recorded in April. This represents a modest increase of ₦10.02 billion.
From this:
₦81.042 billion was deducted for cost of collection
₦1.149 trillion was allocated for transfers, interventions, and refunds
The balance of ₦863.895 billion was distributed as:
Federal Government: ₦393.518 billion
States: ₦199.598 billion
Local Governments: ₦153.881 billion
Derivation revenue (13%): ₦116.898 billion
VAT Collections
VAT collections surged to ₦742.820 billion, up ₦100.555 billion from ₦642.265 billion in April. After deducting ₦29.713 billion for collection costs and ₦21.393 billion for transfers and refunds, the balance of ₦691.714 billion was shared:
Federal Government: ₦103.757 billion
States: ₦345.857 billion
Local Governments: ₦242.100 billion
EMTL and Exchange Gains Distribution:
From the ₦28.820 billion collected through Electronic Money Transfer Levy (EMTL):
Federal Government: ₦4.150 billion
States: ₦13.833 billion
Local Governments: ₦9.683 billion
Cost of Collection: ₦1.153 billion
In addition, ₦76.614 billion was realised from exchange rate differentials:
Federal Government: ₦36.579 billion
States: ₦18.553 billion
Local Governments: ₦14.304 billion
Oil-producing states (13% derivation): ₦7.178 billion
Revenue Trends: CIT, VAT, Import Duties Rise; Oil Receipts Decline
The communique noted that Companies Income Tax (CIT), VAT, and Import Duty recorded substantial increases. However, Petroleum Profit Tax (PPT), Customs CET levies, Oil and Gas Royalties, and EMTL witnessed declines. Excise Duty rose only marginally.
Total Distributable Revenue for May 2025
The combined distributable revenue for May was derived from:
₦863.895 billion in statutory revenue
₦691.714 billion from VAT
₦27.667 billion from EMTL
₦76.614 billion from exchange difference
Bringing the total allocation to ₦1.659 trillion.