FAAC: FG, States, LGs Share N1.659tn Revenue for May
The Federation Account Allocation Committee (FAAC) has distributed a total of N1.659 trillion among the three tiers of government for May 2025.
This was disclosed in a communiqué issued on Wednesday after the June meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun in Abuja.
The shared revenue was drawn from a gross total of N2.942 trillion, which includes statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange difference income.
According to the communiqué, the Federal Government received N538.004 billion, while the states and local government councils got N577.841 billion and N419.968 billion respectively. An additional N124.076 billion was allocated to oil-producing states as 13% derivation.
The communiqué also disclosed that N111.908 billion was set aside as the cost of revenue collection, while N1.171 trillion was earmarked for transfers, interventions, and refunds.
VAT and Statutory Revenue Increase
Revenue from VAT for May stood at N742.820 billion, marking a N100.555 billion increase compared to the previous month. From this amount, N691.714 billion was shared among the three tiers of government after deductions for collection costs and refunds. The Federal Government received N103.757 billion, the states N345.857 billion, and local councils N242.100 billion.
Statutory revenue also recorded a marginal rise to N2.094 trillion, up from N2.084 trillion in April. After statutory deductions, a balance of N863.895 billion was distributed: N393.518 billion to the Federal Government, N199.598 billion to the states, N153.881 billion to local governments, and N116.898 billion to oil-producing states as derivation.
Additional Revenues and Fiscal Outlook
The sum of N28.820 billion from the EMTL was distributed, with the Federal Government receiving N4.150 billion, states N13.833 billion, and local councils N9.683 billion. A further N76.614 billion from exchange rate gains was also shared.
While Companies Income Tax (CIT), VAT, and import duties showed significant growth, Petroleum Profit Tax (PPT), CET levies, oil and gas royalties, and EMTL recorded declines. Excise duty saw only a marginal increase.
Mr. Edun further stressed the need for transparency, accountability, and efficient resource utilization in revenue distribution. He commended FAAC members for their commitment to policies aimed at fostering economic growth and nationwide development.
