The Federal Government, 36 states, and 774 local government councils have shared a total of N1.659 trillion from the Federation Account for May 2025.
This was the outcome of the Federation Account Allocation Committee (FAAC) meeting held in June and chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
A statement issued by the Ministry of Information and National Orientation on Wednesday disclosed that the distributed revenue was drawn from a gross total of N2.942 trillion. This amount included earnings from statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange rate gains.
The Breakdown of the allocation shows that the Federal Government received N538.004 billion, states collected N577.841 billion, and local government councils were allocated N419.968 billion. Oil-producing states received N124.076 billion as 13 percent derivation revenue.
Out of the gross total, N111.908 billion was deducted as the cost of collection, while N1.171 trillion was set aside for transfers, refunds, and intervention-related commitments.
From the N742.820 billion generated as VAT in May — a rise of N100.555 billion compared to April — the Federal Government received N103.757 billion, states got N345.857 billion, and local governments were allocated N242.100 billion. Deductions from the VAT pool included N29.713 billion for collection costs and N21.393 billion for transfers and interventions.
The gross statutory revenue for the month stood at N2.094 trillion, which was slightly higher than April’s figure of N2.084 trillion. After accounting for N81.042 billion in collection expenses and N1.149 trillion earmarked for transfers and interventions, a balance of N863.895 billion was shared: the Federal Government received N393.518 billion, states got N199.598 billion, local councils received N153.881 billion, and N116.898 billion went to oil-producing states as derivation.
In addition, N28.820 billion from EMTL was disbursed: N4.150 billion to the Federal Government, N13.833 billion to states, and N9.683 billion to local councils. N1.153 billion was reserved for collection costs.
FAAC also disbursed N76.614 billion generated from exchange rate differences, with N36.579 billion going to the Federal Government, N18.553 billion to states, N14.304 billion to local governments, and N7.178 billion to oil-producing states.
The Committee noted improved collections from Companies Income Tax (CIT), VAT, and Import Duty, while Petroleum Profit Tax (PPT), Oil and Gas Royalty, CET levies, and EMTL recorded declines. Excise Duty recorded a marginal increase.
In his opening remarks at the meeting, Minister Edun called for continued transparency and prudent financial management. He acknowledged FAAC’s role in ensuring that national resources are fairly and responsibly distributed to drive growth and meet the development needs of the country.
