The Federation Account Allocation Committee (FAAC) distributed N1.65 trillion among Nigeria’s federal, state, and local governments for May 2025, marking a N30 billion decrease from April’s N1.68 trillion allocation.

The allocation figures were announced following FAAC’s June 2025 meeting, chaired by Finance Minister and Coordinating Minister of the Economy Wale Edun. Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, confirmed the details in a statement released Wednesday.

Revenue Sources and Distribution

The N1.65 trillion distribution came from a total gross revenue of N2.94 trillion collected during May. The distributable revenue consisted of:

- Statutory Revenue: N863.89 billion

- Value-Added Tax (VAT): N691.71 billion

- Electronic Money Transfer Levy (EMTL): N27.66 billion

- Exchange Difference: N76.61 billion

The three tiers of government received their allocations as follows:

- Federal Government: N538 billion

- State Governments: N577.84 billion

- Local Governments: N419.96 billion

- Oil-Producing States (derivation fund): N124.07 billion

Additional allocations included N111.90 billion for collection costs and N1.17 trillion for transfers, interventions, and refunds.

VAT Revenue Shows Strong Growth

VAT collections demonstrated robust performance in May, generating N742.82 billion compared to N642.26 billion in April—an increase of N100.56 billion. After deducting N29.71 billion for collection costs and N21.39 billion for transfers and refunds, the remaining N691.71 billion was shared among the government tiers.

From the VAT revenue, the federal government received N103.75 billion, states got N345.85 billion, and local governments were allocated N242.10 billion.

Statutory Revenue Breakdown

Gross statutory revenue of N2.09 trillion for May exceeded April’s N2.08 trillion by N10.02 billion. After setting aside N81.042 billion for collection costs and N1.149 trillion for transfers and refunds, N863.89 billion remained for distribution:

- Federal government: N393.51 billion

- State governments: N199.59 billion

- Local governments: N153.88 billion

- Derivation revenue for mineral-producing states: N116.89 billion

Other Revenue Streams

The EMTL generated N28.82 billion, distributed as follows: federal government (N4.15 billion), states (N13.83 billion), and local governments (N9.68 billion), with N1.15 billion allocated for collection costs.

Exchange difference revenue of N76.61 billion was shared among the federal government (N36.57 billion), states (N18.55 billion), local governments (N14.30 billion), and oil-producing states (N7.17 billion).

Revenue Performance Mixed

The committee reported significant increases in company income tax, VAT, and import duty collections. However, petroleum profit tax, CET levies, oil and gas royalties, and EMTL showed decreases, while excise duty recorded only marginal growth.