The Federal Government, 36 states, and 774 local government councils have shared a total of N1.659 trillion as revenue for May 2025, following the Federation Account Allocation Committee (FAAC) meeting held in Abuja. The figure represents a notable rise compared to previous months, reflecting improved collection of taxes and other federally generated revenues.
According to a press release issued on Wednesday by the Office of the Accountant General of the Federation, the shared revenue comprised statutory allocations, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and revenue from exchange rate gains. Specifically, the distribution included N863.895 billion in statutory revenue, N691.714 billion from VAT, N27.667 billion from EMTL, and N76.614 billion from exchange difference revenue.
The FAAC communiqué disclosed that the total gross revenue available in May stood at N2.942 trillion, up slightly from April’s figure. However, deductions for the cost of collection amounted to N111.908 billion, while total transfers, interventions, and refunds accounted for N1.171 trillion, leaving a net distributable revenue of N1.659 trillion.
From this amount, the Federal Government received N538.004 billion, the State Governments shared N577.841 billion, and Local Government Councils got N419.968 billion. Additionally, oil-producing states received N124.076 billion as their 13 percent derivation share from mineral revenue.
Breaking down the sources of the revenue, the communiqué noted that gross statutory collections for the month reached N2.094 trillion, slightly higher than the N2.084 trillion recorded in April, representing a modest increase of N10.023 billion. The Value Added Tax pool also grew significantly, hitting N742.820 billion, up by N100.555 billion from the N642.265 billion generated in April.
Out of the N863.895 billion distributable statutory revenue, the Federal Government received N393.518 billion, States took N199.598 billion, and Local Governments received N153.881 billion. A further N116.898 billion was distributed as derivation to oil-producing states.
From the N691.714 billion VAT revenue, the Federal Government received N103.757 billion, while States got N345.857 billion and Local Governments shared N242.100 billion.
The Electronic Money Transfer Levy yielded N27.667 billion, from which the Federal Government received N4.150 billion, the States received N13.833 billion, and the Local Governments got N9.683 billion. Revenue from exchange differences added N76.614 billion to the pool, with the Federal Government taking N36.579 billion, States N18.553 billion, Local Governments N14.304 billion, and N7.178 billion distributed as derivation.
The FAAC communiqué further disclosed that while Companies Income Tax (CIT), VAT, and Import Duty rose significantly in the month, Petroleum Profit Tax (PPT), Oil and Gas Royalties, CET levies, and EMTL all recorded declines. Excise Duty recorded only a marginal increase.
The upward movement in VAT and CIT collections is being interpreted by analysts as a sign of improving economic activity and more aggressive tax enforcement. The boost in statutory allocations has provided some relief to subnational governments grappling with fiscal pressures, especially amid rising inflation and the lingering effects of subsidy removal.
Experts say the consistent improvement in gross revenue performance could support government efforts to meet key spending obligations and fund critical infrastructure projects. However, they also caution that rising costs, debt service obligations, and currency depreciation remain pressing concerns for fiscal planners at all levels of government.
The next FAAC meeting is expected to reflect the impact of recent policy changes aimed at expanding the tax net, improving compliance, and stabilizing exchange rate flows.
