The Federation Account Allocation Committee (FAAC) has announced the distribution of N1.659 trillion among the Federal Government, states, and local government councils as revenue allocation for May 2025.
This was disclosed in a communiqué issued at the end of the June 2025 FAAC meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun. The distributed amount was derived from a gross revenue of N2.942 trillion, which includes statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange rate gains.
According to the breakdown, the Federal Government received N538.004 billion, states received N577.841 billion, and local government councils got N419.968 billion. Oil-producing states also received N124.076 billion as 13% derivation revenue.
The cost of collection stood at N111.908 billion, while transfers, interventions, and refunds accounted for N1.171 trillion.
VAT Revenue Sees Significant Increase
Revenue from VAT in May 2025 rose to N742.820 billion, up from N642.265 billion in the previous month—an increase of N100.555 billion. From this amount, N29.713 billion was allocated for collection costs and N21.393 billion for transfers and refunds. The balance of N691.714 billion was distributed with the Federal Government receiving N103.757 billion, states N345.857 billion, and local governments N242.100 billion.
Statutory Revenue and Other Allocations
The gross statutory revenue stood at N2.094 trillion, marginally higher than the N2.084 trillion recorded in April. After deductions for cost of collection (N81.042 billion) and transfers/refunds (N1.149 trillion), a balance of N863.895 billion was shared. The Federal Government received N393.518 billion, states got N199.598 billion, local governments received N153.881 billion, while N116.898 billion went to oil-producing states as derivation revenue.
The committee also reported the distribution of N28.820 billion from EMTL: the Federal Government got N4.150 billion, states N13.833 billion, and local governments N9.683 billion. A further N1.153 billion was allocated for collection costs.
Additionally, N76.614 billion from exchange differences was shared with the Federal Government receiving N36.579 billion, states N18.553 billion, local governments N14.304 billion, and oil-producing states N7.178 billion.
Revenue Trends
The communiqué noted increases in Companies Income Tax (CIT), VAT, and import duty. However, revenues from Petroleum Profit Tax (PPT), CET levies, oil and gas royalties, and EMTL recorded declines. Excise duty experienced only a marginal increase.
Minister Emphasizes Transparency and Accountability
In his opening remarks, Mr. Wale Edun reiterated the government’s commitment to transparency, accountability, and prudent fiscal management in revenue distribution. He praised the FAAC members for their dedication, noting that their efforts are essential to fostering economic growth, development, and stability across Nigeria.
"These collective efforts are designed to ensure that available resources are effectively utilized to deliver dividends of democracy to all Nigerians," Edun stated.
Total Distributable Revenue
In summary, the total revenue distributed for May 2025 was drawn from:
Bringing the total distributable revenue for the month to N1.659 trillion.
Signed:
Mohammed Manga FCIA
Director, Information and Public Relations
June 18, 2025.
