FG, States, LGAs Share N1.703tr from January 2025 Federation Account
By Patience Ikpeme
The Federal Government, State Governments, and Local Government Councils in Nigeria have shared a total sum of N1.703 trillion from the Federation Account Revenue for January 2025.
This distribution was made during the February 2025 Federation Account Allocation Committee (FAAC) meeting held in Abuja.
The N1.703 trillion total distributable revenue comprised several components: N749.727 billion in distributable statutory revenue, N718.781 billion in distributable Value Added Tax (VAT) revenue, N20.548 billion from the Electronic Money Transfer Levy (EMTL), and an augmentation of N214 billion.
According to a communiqué issued by the FAAC, the total gross revenue available in January 2025 was N2.641 trillion. Deductions for the cost of collection amounted to N107.786 billion, while total transfers, interventions, refunds, and savings reached N830.663 billion.
The gross statutory revenue for January 2025 was N1.848 trillion, marking a substantial increase of N622.125 billion compared to the N1.226 trillion received in December 2024. Similarly, the gross revenue from Value Added Tax (VAT) was N771.886 billion, representing a rise of N122.325 billion from the N649.561 billion available in December 2024.
From the total distributable revenue of N1.703 trillion, the Federal Government received N552.591 billion, while the State Governments received N590.614 billion. The Local Government Councils received N434.567 billion, and N125.284 billion (13% of mineral revenue) was allocated to the benefiting States as derivation revenue.
Breaking down the N749.727 billion distributable statutory revenue, the Federal Government received N343.612 billion, the State Governments received N174.285 billion, the Local Government Councils received N134.366 billion, and N97.464 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
For the N718.781 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N107.817 billion, the State Governments received N359.391 billion, and the Local Government Councils received N251.573 billion.
From the N20.548 billion Electronic Money Transfer Levy (EMTL), the Federal Government received N3.082 billion, the State Governments received N7.192 billion, and the Local Government Councils received N10.274 billion.
Regarding the N214 billion Augmentation, the Federal Government received N98.080 billion, the State Governments received N49.747 billion, the Local Government Councils received N38.353 billion, and N27.820 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
The communiqué highlighted significant increases in Value Added Tax (VAT), Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty, and CET Levies in January 2025. Conversely, the Electronic Money Transfer Levy (EMTL) and Oil and Gas Royalty experienced considerable decreases.
This substantial disbursement of funds, the largest so far in 2025, is expected to support various developmental projects and administrative functions across the three tiers of government, contributing to the nation’s economic activities.
