FG, states and councils share ₦1.659 trillion as May 2025 allocation

Summary

• Total distributable revenue for May stood at N1.659 trillion from N2.942 trillion gross
• Federal Government received N538 billion, states N578 billion, and local councils N420 billion
• VAT and Companies Income Tax saw increases, while oil-related revenues declined

Abuja, Nigeria — The Federal Government, states, and local government councils shared a total of ₦1.659 trillion as federation allocation for the month of May 2025, according to a communiqué issued after the June 2025 meeting of the Federation Account Allocation Committee (FAAC) chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

A cross section of participants at the June 2025 meeting of the Federation Account Allocation Committee (FAAC)

The allocation was drawn from a gross revenue of ₦2.942 trillion, comprising statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange difference.

From the distributable total, the Federal Government received ₦538.004 billion, states received ₦577.841 billion, and local government councils got ₦419.968 billion. An additional ₦124.076 billion was allocated to oil-producing states as 13% derivation.

Breakdown of the major revenue components shows that VAT collections rose significantly to ₦742.820 billion in May, up by ₦100.555 billion compared to April. After deductions for cost of collection and transfers, ₦691.714 billion was shared, with the Federal Government taking ₦103.757 billion, states ₦345.857 billion, and LG councils ₦242.100 billion.

Statutory revenue stood at ₦2.094 trillion, a slight increase from the previous month. After deductions, ₦863.895 billion was shared, with the Federal Government receiving ₦393.518 billion, states ₦199.598 billion, local councils ₦153.881 billion, and oil-producing states receiving ₦116.898 billion.

Revenues from the Electronic Money Transfer Levy (EMTL) totaled ₦28.820 billion, distributed among the three tiers, while ₦76.614 billion from exchange difference was also shared.

The communiqué noted that Companies Income Tax (CIT), VAT, and Import Duty saw significant increases, while revenues from Petroleum Profit Tax (PPT), CET levies, Oil and Gas Royalty, and EMTL declined. Excise duty increased only marginally.