The Federation Account Allocation Committee (FAAC) has distributed a total sum of N1.659 trillion to the three tiers of government as revenue for May 2025, according to a communiqué released on Wednesday.
The document, signed by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation, detailed the revenue sharing at the June 2025 FAAC meeting held in Abuja.
Breakdown of Allocated Revenue
The N1.659 trillion total distributable revenue comprised:
Statutory revenue of N863.895 billion
Value Added Tax revenue of N691.714 billion
Electronic Money Transfer Levy revenue of N27.667 billion
Exchange Difference revenue of N76.614 billion
The communiqué noted that the distributable revenue of N2.942 trillion available in May 2025 was higher than the sum of N2.084 trillion received in the previous month by N10.023 billion. Total deductions for collection costs amounted to N111.908 billion, while transfers, interventions, and refunds totaled N1.171 trillion.
Significant VAT Increase
Value Added Tax showed remarkable growth, with gross revenue of N742.820 billion available in May 2025, representing an increase of N100.555 billion compared to the N642.265 billion recorded in April 2025.
Distribution Among Government Tiers
Of the total distributable revenue:
Federal Government received N538.004 billion
State Governments received N577.841 billion
Local Government Councils received N419.968 billion
N124.076 billion (13% of mineral revenue) was shared with benefiting states as derivation revenue
Revenue Performance by Source
The communiqué highlighted that Companies Income Tax, Value Added Tax, and Import Duty increased significantly during the period under review. However, CET Levies, Petroleum Profit Tax, Oil and Gas Royalty, and Electronic Money Transfer Levy all decreased. Excise duty showed only a marginal increase.
The detailed breakdown of the statutory revenue distribution showed the Federal Government received N393.518 billion, state governments received N199.598 billion, and local government councils received N153.881 billion, with N116.898 billion shared as derivation revenue.
From the VAT revenue, the Federal Government received N103.757 billion, state governments received N345.857 billion, and local government councils received N242.100 billion.
The Electronic Money Transfer Levy yielded N4.150 billion for the Federal Government, N13.833 billion for state governments, and N9.683 billion for local government councils.
The Exchange Difference revenue distribution saw the Federal Government receiving N36.579 billion, state governments N18.553 billion, and local government councils N14.304 billion, with N7.178 billion shared as derivation revenue.
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