FG, states, LGCs share N1.659tn federation allocation in May

Abdullateef Fowewe

The Federation Account Allocation Committee (FAAC) at its June 2025 meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the distribution of a total of N1.659 trillion to the three tiers of government for the month of May 2025.

This amount according to a statement on Wednesday by the Ministry of Finance Director, Information and Public Relations, Mohammed Manga, was shared from a gross revenue pool of N2.942 trillion.

From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Exchange Difference, the Federal Government received N538.004 Billion, the States received N577.841Billion, the Local Government Councils got N419.968 Billion, while the Oil Producing States received N124.076 Billion as Derivation, (13% of Mineral Revenue).

“The sum of N111.908 Billion was given for the cost of collection, while N1.171 Trillion was allocated for Transfers Intervention and Refunds.

“The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of May 2025, was N742.820 Billion as against N642.265 Billion distributed in the preceeding month, resulting in an increase of N100.555 Billion.

“From that amount, the sum of N29.713 Billion was allocated for the cost of collection and the sum of N21.393 Billion given for Transfers, Intervention and Refunds. The remaining sum of N691.714 Billion was distributed to the three tiers of government, of which the Federal Government got N103.757 Billion, the States received N345.857 Billion and Local Government Councils got N242.100 Billion,” the statement reads.

The Gross Statutory Revenue for the month amounted to N2.094 trillion, surpassing the previous month’s total of N2.084 trillion by N10.023 billion. Of this total, N81.042 billion was designated for collection costs, and N1.149 trillion was allocated for Transfers, Interventions, and Refunds.

The remaining balance of N863.895 billion was distributed among the three levels of government as follows: the Federal Government received N393.518 billion, States were allocated N199.598 billion, Local Government Councils received N153.881 billion, and N116.898 billion was designated for Derivation Revenue (13% for mineral-producing States).

Additionally, N28.820 billion collected from the Electronic Money Transfer Levy (EMTL) was distributed to the three tiers of government: the Federal Government got N4.150 billion, States received N13.833 billion, Local Government Councils were allocated N9.683 billion, and N1.153 billion was set aside for Collection Costs.

The Communique also mentioned the sum of N76.614 Billion from Exchange Difference which was distributed to the three tiers of Government as follows: Federal government got N36.579 Billion, the State received N18.553 Billion, the LGCs got N14.304 Billion, while the Oil producing States received N7.178 Billion.

Companies Income Tax (CIT), Value Added Tax (VAT) and Import Duty increased significantly, while Petroleum Profit Tax (PPT), CET levies, Oil and Gas Royalty and Electronic Money Transfer Levy (EMTL) recorded decreases. Excise Duty increased only marginally.

According to the Communique, the total revenue distributable for the current month of May 2025, was drawn from Statutory Revenue of N863.895 Billion, Value Added Tax (VAT) of N691.714 Billion, N27.667 Billion from Electronic Money Transfer Levy (EMTL) and the sum of N76.614 Billion from Exchange Difference, bringing the total distributable amount for the month to N1.659 Trrillion.