Photo caption: FAAC logo
The Federation Account Allocation Committee has distributed N1.659tn as the Federation Account revenue for May 2025. This amount represents a decline of N22bn, or about 1.31 per cent, from the N1.681tn shared in April 2025.
A statement from the Office of the Accountant-General of the Federation, issued by Director (Press and Public Relations) Bawa Mokwa, on Wednesday, confirmed that the disbursement was made during the FAAC meeting held in Abuja in June 2025.
The total revenue was shared among the Federal Government, 36 state governments, and 774 local government councils in line with the usual revenue-sharing formula.
According to the statement, “A total sum of N1.659tn, being May 2025 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”
The total distributable revenue for May 2025 comprised N863.895bn in distributable statutory revenue, N691.714bn from Value Added Tax, N27.667bn from the Electronic Money Transfer Levy, and N76.614bn from Exchange Difference revenue. After deductions for the cost of collection (N111.908bn) and transfers, interventions, and refunds (N1.171tn), the distributable revenue stood at N1.659tn.
The statement added, “A communiqué issued by the Federation Account Allocation Committee indicated that total gross revenue of N2.942tn was available in the month of May 2025.
Total deduction for cost of collection was N111.908bn while total transfers, interventions and refunds was N1.171tn.
“According to the communiqué, gross statutory revenue of N2.094tn was received for the month of May 2025. This was higher than the sum of N2.084tn received in the month of April 2025 by N10.023bn.”
The statutory revenue, which forms the bulk of the distributable revenue, increased slightly, with gross statutory revenue for May 2025 amounting to N2.094tn, a N10.023bn increase from April 2025.
VAT revenue also rose by N100.555bn, from N642.265bn in April to N742.820bn in May. From the N1.659tn total shared revenue, the Federal Government received N538.004bn, state governments received N577.841bn, and local government councils received N419.968bn.
An additional N124.076bn, representing 13 per cent of mineral revenue, was allocated to the benefiting states as derivation revenue.
In terms of revenue breakdown, the N863.895bn statutory revenue was divided into N393.518bn for the Federal Government, N199.598bn for state governments, and N153.881bn for local government councils.
Also, N116.898bn of mineral revenue was distributed among the benefiting states.
VAT revenue, totalling N691.714bn, was divided with N103.757bn going to the Federal Government, N345.857bn to the state governments, and N242.100bn to the local government councils.
The Electronic Money Transfer Levy of N27.667bn was shared with N4.150bn going to the Federal Government, N13.833bn to the state governments, and N9.683bn to local government councils.
From the N76.614bn in Exchange Difference revenue, the Federal Government received N36.579bn, state governments received N18.553bn, and local government councils were allocated N14.304bn.
Also, N7.178bn from mineral revenue was shared with the benefiting states as derivation revenue.
While several key revenue streams, including Companies Income Tax, VAT, and Import Duty, showed growth, other levies like CET Levies, Petroleum Profit Tax, Oil and Gas Royalty, and EMTL experienced decreases. Excise Duty showed a marginal increase.
Despite the decline in total revenue from April to May 2025, the allocations continue to ensure a steady flow of funds for government operations at all levels.
