The three tiers of government in Nigeria shared a total of N1.659 trillion as Federation Allocation for the month of May 2025, from a gross total of N2.942 trillion.

This was disclosed by the Federation Account Allocation Committee (FAAC) at its June 2025 meeting, chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

The distributed sum, which includes Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference, saw the Federal Government receive N538.004 billion, while the States received N577.841 billion. Local Government Councils were allocated N419.968 billion, and oil-producing states received an additional N124.076 billion as Derivation (13% of Mineral Revenue).

Further breakdowns from the FAAC communique revealed that N111.908 billion was set aside for the cost of collection, with N1.171 trillion allocated for Transfers Intervention and Refunds.

The Gross Revenue from Value Added Tax (VAT) for May 2025 stood at N742.820 billion, marking an increase of N100.555 billion compared to the N642.265 billion distributed in the preceding month. After deductions for cost of collection (N29.713 billion) and Transfers, Intervention, and Refunds (N21.393 billion), the remaining N691.714 billion was distributed, with the Federal Government receiving N103.757 billion, States N345.857 billion, and Local Government Councils N242.100 billion.

Gross Statutory Revenue for the month reached N2.094 trillion, a slight increase of N10.023 billion from the N2.084 trillion recorded in the previous month. From this, N81.042 billion was for cost of collection and N1.149 trillion for Transfers, Intervention, and Refunds.

The balance of N863.895 billion was distributed as follows: Federal Government (N393.518 billion), States (N199.598 billion), Local Government Councils (N153.881 billion), and Derivation Revenue for mineral-producing states (N116.898 billion).

Electronic Money Transfer Levy (EMTL) contributed N28.820 billion, distributed with N4.150 billion to the Federal Government, N13.833 billion to States, N9.683 billion to Local Government Councils, and N1.153 billion for Cost of Collection.

An additional N76.614 billion from Exchange Difference was also distributed, with the Federal Government receiving N36.579 billion, States N18.553 billion, Local Government Councils N14.304 billion, and oil-producing states N7.178 billion.

The committee noted significant increases in Companies Income Tax (CIT), Value Added Tax (VAT), and Import Duty. Conversely, Petroleum Profit Tax (PPT), CET levies, Oil and Gas Royalty, and Electronic Money Transfer Levy (EMTL) experienced decreases, while Excise Duty saw only a marginal increase.

The total distributable revenue for May 2025 was derived from Statutory Revenue (N863.895 billion), Value Added Tax (VAT) (N691.714 billion), Electronic Money Transfer Levy (EMTL) (N27.667 billion), and Exchange Difference (N76.614 billion), summing up to the N1.659 trillion shared amount.

In his opening remarks at the meeting, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized the federal government’s commitment to transparency, accountability, and prudent fiscal management in revenue allocation.

He commended FAAC members for their dedication to achieving the government’s policy objectives, stating that these collective efforts aim to foster economic growth, stability, and development across all regions for the benefit of Nigerians.