FAAC Disburses N1.659 trillion for May, Slightly Down from April Allocation
The Federation Account Allocation Committee (FAAC) allocated N1.659 trillion in federal revenue for May 2025, representing a month-over-month reduction compared to April’s N1.681 trillion distribution.
The decrease amounts to N22 billion, reflecting a 1.31% decline.
Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation, announced the allocation details in a Wednesday press release. The revenue sharing took place during the FAAC’s June 2025 meeting in Abuja.
Revenue distribution followed established formulas among Nigeria’s three tiers of government: the federal, 36 states, and 774 local government areas.
May 2025’s distributable revenue comprised multiple sources: N863.895 billion from statutory revenue, N691.714 billion from VAT collections, N27.667 billion through Electronic Money Transfer Levy, and N76.614 billion from exchange rate differentials.
Total gross revenue reached N2.942 trillion in May 2025, surpassing April’s N2.084 trillion figure. After accounting for collection costs (N111.908 billion) and various deductions, including transfers, interventions, and refunds (N1.171 trillion), the net distributable amount totalled N1.659 trillion.
Statutory revenue experienced modest growth, with gross collections rising to N2.094 trillion in May from April’s N2.084 trillion—an increase of N10.023 billion. VAT collections showed stronger performance, climbing N100.555 billion from April’s N642.265 billion to May’s N742.820 billion.
Revenue allocation breakdown: The Federal Government secured N538.004 billion, state governments received N577.841 billion, and local government councils obtained N419.968 billion. Mineral-producing states received N124.076 billion as derivation payments (13% of mineral revenue).
The statutory revenue of N863.895 billion was apportioned as follows: N393.518 billion to federal authorities, N199.598 billion to states, and N153.881 billion to local governments. An additional N116.898 billion went to qualifying states as mineral derivation funds.
From VAT collections totalling N691.714 billion, the federal government claimed N103.757 billion, states received N345.857 billion, and local councils got N242.100 billion.
Electronic Money Transfer Levy distribution from N27.667 billion: N4.150 billion to the federal government, N13.833 billion to states, and N9.683 billion to local governments.
The exchange difference revenue of N76.614 billion was shared with N36.579 billion going to federal authorities, N18.553 billion to states, and N14.304 billion to local governments. Benefiting states also received N7.178 billion as derivation revenue.
Revenue performance varied across different sources in May 2025. Companies’ Income Tax, VAT, and Import Duty registered notable gains. Conversely, several revenue streams declined, including CET Levies, Petroleum Profit Tax, Oil and Gas Royalty, and Electronic Money Transfer Levy. Excise Duty showed minimal growth.
The month-over-month revenue decline highlights ongoing challenges in revenue generation; however, the systematic distribution ensures continued funding for government operations across all administrative levels.
