Mkpoikana Udoma
Port Harcourt — The Federation Account Allocation Committee, FAAC, has shared a total of N1.659 trillion to the three tiers of government as revenue for May 2025, marking one of the highest monthly disbursements this year and reflecting strong performance in Value Added Tax, VAT, and Companies Income Tax, CIT.
The figure was announced following FAAC’s June 2025 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, from a gross revenue of N2.942 trillion.
From the total distributable amount, the Federal Government received N538.004 billion, while the State Governments received N577.841 billion. The Local Government Councils got N419.968 billion, and the Oil-producing States received N124.076 billion as 13 percent derivation revenue.
Value Added Tax, VAT, accounted for a significant portion of the revenue, contributing N742.820 billion, which is an increase of N100.555 billion compared to April 2025. After deducting costs and interventions, N691.714 billion was distributed from the VAT pool, with the Federal Government receiving N103.757 billion, the States N345.857 billion, and the Local Governments N242.100 billion.
The gross statutory revenue for the month stood at N2.094 trillion, up by N10.023 billion from the previous month. Following deductions, the remaining N863.895 billion was distributed among the three tiers of government.
The Federal Government received N393.518 billion, the State Governments N199.598 billion, and the Local Government Councils N153.881 billion. In addition, N116.898 billion was allocated as 13 percent derivation revenue to the oil-producing states.
Other revenue streams included the Electronic Money Transfer Levy, EMTL, from which N28.820 billion was shared among the three tiers. The Federal Government received N4.150 billion, the States got N13.833 billion, and the Local Governments received N9.683 billion, while N1.153 billion was retained as the cost of collection.
From the Exchange Difference, a total of N76.614 billion was distributed, with the Federal Government receiving N36.579 billion, the States N18.553 billion, the Local Governments N14.304 billion, and the Oil-producing States N7.178 billion as derivation.
According to the FAAC communiqué, Companies Income Tax, Value Added Tax, and Import Duty recorded significant increases. In contrast, revenues from Petroleum Profit Tax, Oil and Gas Royalty, CET Levies, and Electronic Money Transfer Levy declined, while Excise Duty posted a marginal increase.
In total, the distributable revenue for May 2025 was drawn from N863.895 billion in statutory revenue, N691.714 billion in VAT, N27.667 billion from EMTL, and N76.614 billion from exchange difference, bringing the total to N1.659 trillion.
