Oritsegbubemi Omatseyin
Lagos — The Federation Account Allocation Committee, FAAC, has shared N1.678 trillion among the Federal Government, states and the local governments as Federation Account revenue for February 2025, marking a slight drop from the N1.703 trillion disbursed in January.
The decline is attributed to lower revenue from Value Added Tax, VAT, Petroleum Profit Tax, PPT, and Companies Income Tax, CIT.
According to a communiqué issued by FAAC made available by the Director, Press and Public Relations, Office of the Accountant-General of the Federation, Bawa Mokwa, Gross statutory revenue fell to N1.653 trillion, representing a N194.664 billion decrease from the N1.848 trillion recorded in January. Similarly, VAT revenue dropped to N654.456 billion, down N117.430 billion from the previous month’s N771.886 billion.
Despite an increase in revenue from Oil and Gas Royalty and EMTL, the overall distributable revenue declined due to the reductions in VAT and other major tax sources.
The N1.678 trillion shared among the three tiers of government comprised 827.633 billion from statutory revenue, 609.430 billion from VAT, 35.171 billion from the Electronic Money Transfer Levy, EMTL, N28.218 billion from solid minerals revenue, 178 billion as an augmentation.
The total gross revenue for February stood at N2.344 trillion, but deductions of N89.092 billion were made for the cost of collection, while N577.097 billion was allocated for transfers, interventions, refunds, and savings.
From the 1.678 trillion, the Federal Government received N569.656 billion, State governments received N562.195 billion, Local government councils received N410.559 billion and Oil-producing states received N136.042 billion as 13% derivation revenue
In February 2025, Oil and Gas Royalty and Electronic Money Transfer Levy, EMTL, increased significantly while Value Added Tax, VAT, Petroleum Profit Tax, PPT, Companies Income Tax, CIT, Excise Duty, Import Duty and CET Levies recorded decrease.
The FAAC meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, was attended by the Accountant General of the Federation, Shamseldeen Ogunjimi, and other senior government officials.
The government remains committed to improving revenue streams and ensuring the effective distribution of resources among the three tiers for economic growth and development.
