FG, States, and LGAs Share N1.659tr as May 2025 Revenue
By Patience Ikpeme
Nigeria’s three tiers of government – Federal, State, and Local Government Councils – have shared a total of N1.659 trillion as the Federation Account Revenue for May 2025. This allocation was finalized at the Federation Account Allocation Committee (FAAC) meeting held in Abuja in June 2025.
The total distributable revenue of N1.659 trillion was composed of several components: N863.895 billion from statutory revenue, N691.714 billion from Value Added Tax (VAT), N27.667 billion from the Electronic Money Transfer Levy (EMTL), and N76.614 billion from Exchange Difference revenue.
A communiqué released by FAAC after the meeting indicated that the total gross revenue available in May 2025 was N2.942 trillion. From this amount, N111.908 billion was deducted for the cost of collection, and N1.171 trillion was set aside for transfers, interventions, and refunds, leading to the distributable sum.
Gross statutory revenue for May 2025 stood at N2.094 trillion, representing a slight increase of N10.023 billion compared to the N2.084 trillion received in April 2025. Similarly, gross revenue from Value Added Tax (VAT) in May 2025 was N742.820 billion, which is N100.555 billion higher than the N642.265 billion available in April 2025.
From the total distributable revenue of N1.659 trillion, the Federal Government received N538.004 billion, State Governments received N577.841 billion, and Local Government Councils received N419.968 billion. Additionally, N124.076 billion, representing 13% of mineral revenue, was allocated to benefiting states as derivation revenue.
A more detailed breakdown of the allocations shows that:
From the N863.895 billion distributable statutory revenue, the Federal Government received N393.518 billion, State Governments received N199.598 billion, and Local Government Councils received N153.881 billion. An additional N116.898 billion (13% of mineral revenue) was distributed to benefiting states as derivation revenue.
From the N691.714 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N103.757 billion, State Governments received N345.857 billion, and Local Government Councils received N242.100 billion.
From the N27.667 billion Electronic Money Transfer Levy (EMTL), the Federal Government received N4.150 billion, State Governments received N13.833 billion, and Local Government Councils received N9.683 billion.
From the N76.614 billion Exchange Difference revenue, the Federal Government received N36.579 billion, State Governments received N18.553 billion, and Local Government Councils received N14.304 billion. An additional N7.178 billion (13% of mineral revenue) was shared to benefiting states as derivation revenue.
Analysis of revenue streams in May 2025 indicates that Companies Income Tax (CIT), Value Added Tax (VAT), and Import Duty recorded significant increases. Conversely, CET Levies, Petroleum Profit Tax (PPT), Oil and Gas Royalty, and Electronic Money Transfer Levy (EMTL) experienced decreases. Excise Duty, however, saw only a marginal increase.
