19 June 2025
The Federation Account Allocation Committee (FAAC) has distributed a total revenue of N1.659 trillion for May 2025 to the three tiers of government, reflecting an uptick in revenue inflow compared to the previous month.
This was disclosed by Bawa Mokwa, Director of Press and Public Relations at the Federal Ministry of Finance, in a communiqué issued after the FAAC meeting held in Abuja on Wednesday, June 2025.
According to Mokwa, the revenue was shared among the federal, state, and local governments as follows: the federal government received N538.004 billion, states got N577.841 billion, and local government councils received N419.968 billion. An additional N124.076 billion, representing 13% of mineral revenue, was disbursed to oil-producing states as derivation.
He said, “The gross revenue available in May stood at N2.942 trillion, out of which N1.659 trillion was distributed after deductions for collection costs and other statutory transfers.”
The breakdown of the distributable revenue includes N863.895 billion from statutory sources, N691.714 billion from Value Added Tax (VAT), N27.667 billion from the Electronic Money Transfer Levy (EMTL), and N76.614 billion from exchange rate differentials.
The FAAC report shows improved performance in key non-oil revenue streams. Value Added Tax (VAT) collections in May rose significantly to N742.820 billion, compared to N642.265 billion in April, showing an increase of N100.555 billion. Similarly, statutory revenue saw a slight increase from N2.084 trillion in April to N2.094 trillion in May.
However, the report noted that some oil-related revenues declined during the period. “While Companies Income Tax (CIT), VAT, and Import Duty rose considerably, Petroleum Profit Tax (PPT), Oil and Gas Royalties, CET Levies, and EMTL recorded reductions. Excise duty saw only a marginal increase,” the communiqué stated.
A closer look at the distribution shows that from the N863.895 billion statutory revenue, the federal government got N393.518 billion, states received N199.598 billion, and LGAs were allocated N153.881 billion. Oil-producing states also received N116.898 billion as derivation.
Out of the N691.714 billion VAT revenue, the federal government took N103.757 billion, states received N345.857 billion, and local governments got N242.100 billion.
For the N27.667 billion from EMTL, the federal government got N4.150 billion, states received N13.833 billion, and local governments got N9.683 billion.
Exchange difference revenue of N76.614 billion was also distributed, with the federal government receiving N36.579 billion, states N18.553 billion, and LGAs N14.304 billion. A further N7.178 billion from this was shared as derivation to eligible states.
The consistent rise in VAT and non-oil taxes may offer some fiscal breathing space for the government amid economic challenges. However, the dip in petroleum-related revenues continues to highlight the vulnerability of Nigeria’s economy to global oil market fluctuations.
