The Federation Account Allocation Committee (FAAC) has distributed a total of ₦1.659 trillion as revenue for May 2025 among the federal, state, and local governments, according to a statement released on Wednesday by the Office of the Accountant General of the Federation.
The allocation marks a ₦22 billion decline compared to the ₦1.681 trillion shared in April, representing a 1.31% decrease in total disbursement.
The revenue distribution, finalised at the June FAAC meeting in Abuja, follows the standard revenue-sharing formula among the Federal Government, 36 states, and 774 local government councils (LGCs).
Breakdown of May Revenue
The gross revenue generated in May stood at ₦2.942 trillion, showing an increase from ₦2.084 trillion in April. However, following deductions for collection costs (₦111.91 billion) and transfers, refunds, and intervention funds (₦1.171 trillion), the net distributable revenue was reduced to ₦1.659 trillion.
Here’s how the funds were distributed:
- Federal Government: ₦538.004 billion
- State Governments: ₦577.841 billion
- Local Government Councils: ₦419.968 billion
- 13% Derivation Revenue to Oil-Producing States: ₦124.076 billion
Revenue Components
The ₦1.659 trillion disbursed was drawn from several sources:
- Statutory Revenue: ₦863.895 billion
- Federal Government: ₦393.518 billion
- States: ₦199.598 billion
- LGAs: ₦153.881 billion
- Derivation (13% of mineral revenue): ₦116.898 billion
- Value Added Tax (VAT): ₦691.714 billion
- Federal Government: ₦103.757 billion
- States: ₦345.857 billion
- LGAs: ₦242.100 billion
- Electronic Money Transfer Levy (EMTL): ₦27.667 billion
- Federal Government: ₦4.150 billion
- States: ₦13.833 billion
- LGAs: ₦9.683 billion
- Exchange Difference Revenue: ₦76.614 billion
- Federal Government: ₦36.579 billion
- States: ₦18.553 billion
- LGAs: ₦14.304 billion
- Derivation (13%): ₦7.178 billion
Performance of Key Revenue Streams
May saw stronger earnings from Companies Income Tax (CIT), VAT, and Import Duties. However, revenue from Petroleum Profit Tax (PPT), CET Levies, Oil and Gas Royalties, and EMTL declined during the same period. Excise Duty posted only a slight increase.
Despite the slight dip in overall revenue compared to April, FAAC’s continued disbursement underscores efforts to maintain a stable flow of funding across federal, state, and local levels, even amid fluctuating revenue trends. These funds are critical for sustaining public services and development initiatives nationwide.
