By John Moses
The Nigerian Federation Account Allocation Committee (FAAC) has disbursed a total of ₦1.659 trillion in revenue generated in May 2025 among the Federal Government, States, and Local Government Councils (LGCs).
The distribution was confirmed in a communiqué released following FAAC’s June session held in Abuja on Wednesday. The statement, issued by Mr Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, broke down the sources of the funds.
The disbursed sum comprises:
₦863.89 billion from statutory revenue
₦691.71 billion from Value Added Tax (VAT)
₦27.67 billion from the Electronic Money Transfer Levy (EMTL)
₦76.61 billion from exchange rate differences
In total, Nigeria recorded a gross revenue of ₦2.942 trillion for May. However, ₦111.91 billion was deducted for collection costs, while ₦1.171 trillion went towards transfers, interventions, and refunds.
From the ₦1.659 trillion distributable sum:
The Federal Government received ₦538 billion
States received ₦577.84 billion
Local Councils received ₦419.97 billion
Additionally, ₦124.08 billion was allocated to oil-producing states as 13% derivation revenue
The statutory revenue portion of ₦863.89 billion was shared with the Federal Government receiving ₦393.52 billion, states ₦199.60 billion, and councils ₦153.88 billion. Oil-producing states were allocated an additional ₦116.90 billion as derivation.
VAT revenue for May was notably higher than in April, rising to ₦742.82 billion – an increase of over ₦100 billion. From this, the Federal Government received ₦103.76 billion, the states ₦345.86 billion, and the councils ₦242.10 billion.
Revenue from the EMTL and exchange rate adjustments was also distributed accordingly, with oil-derived revenue still benefiting certain states under the derivation formula.
The communiqué noted that Company Income Tax (CIT), VAT, and Import Duty saw significant increases, while Petroleum Profit Tax, Oil and Gas Royalties, and EMTL experienced declines. Excise Duty rose marginally.
