The Federation Account Allocation Committee (FAAC) has announced the disbursement of a total sum of N1.659 trillion to the federal, state, and local governments as revenue allocation for the month of May.
This disclosure was made in a communiqué issued after the FAAC meeting held in June 2025. The meeting was chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
According to the ministry, the total distributable amount of N1.659 trillion was drawn from a gross revenue of N2.942 trillion.
READ ALSO: FAAC disburses ₦1.578 trillion to FG, states and LGs for March allocation
This figure comprises revenues from Statutory Allocations, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference.
Out of the N1.659 trillion shared, the FG received N538.004 billion, the state governments received N577.841 billion, and the LG received N419.968 billion.
In addition, oil-producing states received N124.076 billion as derivation, which represents 13% of mineral revenue.
The communiqué also stated that N111.908 billion was allocated for the cost of revenue collection, while a sum of N1.171 trillion was earmarked for transfers, interventions, and refunds.
The committee noted that the gross revenue from VAT for May 2025 amounted to N742.820 billion, representing an increase of N100.555 billion compared to N642.265 billion recorded in April 2025.
From the VAT revenue, N29.713 billion was allocated for the cost of collection, and N21.393 billion was designated for transfers, interventions, and refunds.
The balance of N691.714 billion was distributed among the three tiers of government, with the FG receiving N103.757 billion, the states receiving N345.857 billion, and the LG receiving N242.100 billion.
In terms of statutory revenue, the gross amount received for May 2025 was N2.094 trillion, which was slightly higher than the N2.084 trillion recorded in April by N10.023 billion.
From this amount, N81.042 billion was allocated for the cost of collection and N1.149 trillion for transfers, interventions, and refunds.
The remaining N863.895 billion was shared, with the FG receiving N393.518 billion, the states receiving N199.598 billion, the LG receiving N153.881 billion, and N116.898 billion allocated to oil-producing states as derivation revenue.
From the Electronic Money Transfer Levy (EMTL), a total of N28.820 billion was distributed. The FG received N4.150 billion, the states got N13.833 billion, and the LG received N9.683 billion, while N1.153 billion was allocated for the cost of collection.
The communiqué further revealed that a total of N76.614 billion was generated from Exchange Difference. This was distributed as follows: the FG received N36.579 billion, the states received N18.553 billion, the LG received N14.304 billion, and the oil-producing states received N7.178 billion.
READ ALSO: FG, states, LGs share N1.681tn FAAC allocation for April
In terms of performance of revenue sources, the communiqué noted that Companies Income Tax (CIT), Value Added Tax (VAT), and Import Duty recorded significant increases. In contrast, Petroleum Profit Tax (PPT), CET levies, Oil and Gas Royalty, and Electronic Money Transfer Levy (EMTL) experienced declines.
Excise Duty was said to have increased only marginally.
The total revenue distributable for May 2025 was therefore made up of N863.895 billion from Statutory Revenue, N691.714 billion from VAT, N27.667 billion from EMTL, and N76.614 billion from Exchange Difference, bringing the overall total to N1.659 trillion.
