The Federal Government, State Governments, and Local Government Councils have shared a total revenue of ₦1.659 trillion for the month of May 2025, according to a communiqué issued at the end of the Federation Account Allocation Committee (FAAC) meeting held in Abuja in June 2025.
The distributed revenue includes various income sources such as statutory allocations, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange rate difference revenue. Specifically, the revenue breakdown shows that the distributable statutory revenue stood at ₦863.895 billion, VAT contributed ₦691.714 billion, EMTL provided ₦27.667 billion, and the exchange rate difference added ₦76.614 billion to the total.
According to the FAAC communiqué, the gross revenue received for May 2025 was ₦2.942 trillion, which is higher than what was distributed. However, the difference went into various deductions, including ₦111.908 billion for the cost of revenue collection and ₦1.171 trillion for transfers, refunds, and special government interventions.
From the ₦1.659 trillion shared, the Federal Government received ₦538.004 billion, the 36 State Governments received ₦577.841 billion, and the 774 Local Government Councils got ₦419.968 billion. In addition, ₦124.076 billion was paid as 13% derivation revenue to states that produce oil and other mineral resources.
In the statutory allocation of ₦863.895 billion, the Federal Government took ₦393.518 billion, States received ₦199.598 billion, and Local Governments got ₦153.881 billion. An additional ₦116.898 billion was shared to oil-producing states based on the 13% derivation principle.
The VAT revenue, which contributed a substantial ₦691.714 billion to the pool, was shared with the Federal Government receiving ₦103.757 billion, States ₦345.857 billion, and Local Governments ₦242.100 billion. This shows an increase of ₦100.555 billion from the ₦642.265 billion recorded in April 2025, indicating stronger domestic consumption and compliance by VAT-paying entities.
On the Electronic Money Transfer Levy (EMTL), the total collection for May 2025 was ₦27.667 billion. Out of this, the Federal Government got ₦4.150 billion, the States received ₦13.833 billion, and Local Government Councils got ₦9.683 billion. This levy, introduced in recent years, continues to be a steady income source, though its May figure represents a slight drop from previous months.
The revenue from exchange rate gains for the month stood at ₦76.614 billion. This was distributed with the Federal Government receiving ₦36.579 billion, States ₦18.553 billion, and Local Governments ₦14.304 billion. Additionally, ₦7.178 billion was given to oil-producing states from this category as part of the derivation fund.
The FAAC statement noted that May’s collections from Company Income Tax (CIT), Import Duty, and VAT showed significant improvement. This was attributed to increased economic activity and improved enforcement by relevant agencies. However, there were declines in revenues from the Common External Tariff (CET) levies, Petroleum Profit Tax (PPT), oil and gas royalties, and the EMTL. Excise duty experienced a slight increase.
These allocations are vital for running government at all three levels—federal, state, and local. They fund salaries, infrastructure, education, healthcare, and other public services. The revenue sharing formula is determined by existing fiscal policies and agreements within the Nigerian federation, and any changes must be backed by law and national consensus.
The FAAC meeting was attended by top officials from the Federal Ministry of Finance, Office of the Accountant General of the Federation, Commissioners of Finance from the 36 states, and representatives from revenue-generating agencies like the Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), and the Nigerian National Petroleum Company Limited (NNPCL).
FAAC’s monthly allocation remains one of the most anticipated fiscal events in Nigeria, especially as the country continues to navigate challenges posed by inflation, foreign exchange instability, and fluctuating oil revenues. Government analysts have called for sustained reforms in revenue generation and prudent spending to improve fiscal sustainability across all tiers of government.
