FAAC: Three Tiers of Government Share N1.659tn May Revenue

FAAC: Three Tiers of Government Share N1.659tn May Revenue

JOEL OLADELE, Abuja

The Federation Account Allocation Committee (FAAC) has announced the distribution of N1.659 trillion to the three tiers of government for the month of May 2025.

This allocation, which comes from a gross total of N2.942 trillion, was disclosed during the FAAC meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

According to a statement signed on Wednesday by the Director, Information and Public Relations, Ministry of Finance, Mohammed Manga, the breakdown of the allocations showed that the Federal Government received N538.004 billion, while the States were allocated N577.841 billion.

While Local Government Councils received N419.968 billion, and the Oil Producing States were granted N124.076 billion as Derivation, which is 13% of Mineral Revenue. Additionally, N111.908 billion was set aside for the cost of collection, and N1.171 trillion was allocated for Transfers, Intervention, and Refunds.

The FAAC communiqué highlighted a significant increase in Gross Revenue from Value Added Tax (VAT) for May 2025, amounting to N742.820 billion, compared to N642.265 billion in the previous month. This increase of N100.555 billion reflects a positive trend in revenue generation. From this VAT amount, N29.713 billion was allocated for the cost of collection, while N21.393 billion was designated for Transfers, Intervention, and Refunds. The remaining N691.714 billion was distributed among the three tiers of government, with the Federal Government receiving N103.757 billion, States getting N345.857 billion, and Local Government Councils allocated N242.100 billion.

The Gross Statutory Revenue for the month was reported at N2.094 trillion, which is an increase of N10.023 billion from the previous month. From this amount, N81.042 billion was allocated for the cost of collection, and a total of N1.149 trillion was set aside for Transfers, Intervention, and Refunds.

The remaining balance of N863.895 billion was distributed as follows: the Federal Government received N393.518 billion, States got N199.598 billion, Local Government Councils received N153.881 billion, and N116.898 billion was allocated to Derivation Revenue for mineral-producing States.

Furthermore, the distribution included N28.820 billion from the Electronic Money Transfer Levy (EMTL), with the Federal Government receiving N4.150 billion, States getting N13.833 billion, and Local Government Councils allocated N9.683 billion. Additionally, N76.614 billion from Exchange Difference was distributed, with the Federal Government receiving N36.579 billion, States getting N18.553 billion, Local Government Councils receiving N14.304 billion, and Oil Producing States allocated N7.178 billion.

In his opening remarks, Edun emphasized the importance of transparency, accountability, and prudent fiscal management in the revenue allocation process.

“Our collective efforts aim to drive economic growth, stability, and development across all regions, ensuring resources are utilized effectively for the benefit of all Nigerians,” he stated.

He commended the FAAC members for their commitment to realizing the government’s policy objectives, reinforcing the need for effective resource management in the face of economic challenges.