The Federal Government, 36 states and 774 Local Government councils across Nigeria have shared a total sum of N1.659 trillion from the May 2025 federation account revenue allocation, marking a significant distribution of national resources during the June 2025 Federation Account Allocation Committee (FAAC) meeting held in Abuja.
Revenue Composition and Sources
The N1.659 trillion total distributable revenue comprised four major components: distributable statutory revenue of N863.895 billion representing the largest portion, distributable Value Added Tax (VAT) revenue of N691.714 billion, Electronic Money Transfer Levy (EMTL) revenue of N27.667 billion, and Exchange Difference revenue of N76.614 billion.
FAAC data released by Director of Information in the Office of the Accountant General of the Federation, Mallam Bawa Mokwa, revealed that gross revenue of N2.942 trillion was available during May 2025. However, significant deductions reduced the distributable amount, with cost of revenue collection standing at N111.908 billion and total transfers, interventions and refunds accounting for N1.171 trillion.
Statutory Revenue Performance Shows Growth
The federation recorded gross statutory revenue of N2.094 trillion for May 2025, representing an increase of N10.023 billion compared to the N2.084 trillion received in April 2025. This upward trajectory demonstrates improved revenue generation capacity across key sectors of the economy.
Similarly, Value Added Tax collections showed remarkable improvement with gross VAT revenue of N742.820 billion available in May 2025, marking a substantial increase of N100.555 billion over the N642.265 billion recorded in April 2025.
Distribution Among Government Tiers
Federal Government Allocation: The Federal Government received the largest single allocation of N538.004 billion from the total distributable revenue, reflecting its constitutional responsibilities for defense, foreign affairs, and other exclusive legislative items.
State Governments Share: The 36 state governments collectively received N577.841 billion, which represents the highest allocation among the three tiers, underscoring states’ critical role in governance, education, healthcare, and infrastructure development.
Local Government Allocation: Nigeria’s 774 Local Government councils shared N419.968 billion, ensuring grassroots development and service delivery to communities across the country.
Derivation Revenue: Oil-producing states benefited from an additional N124.076 billion distributed as 13% derivation revenue from mineral resources, providing compensation for environmental and developmental challenges associated with resource extraction.
Detailed Breakdown by Revenue Sources
Statutory Revenue Distribution (N863.895 billion)
From the statutory revenue allocation, the Federal Government received N393.518 billion while state governments got N199.598 billion. Local Government councils were allocated N153.881 billion, with oil-producing states receiving N116.898 billion as derivation revenue.
VAT Revenue Sharing (N691.714 billion)
The Value Added Tax distribution favored state and local governments significantly. State governments received the largest portion at N345.857 billion, followed by Local Government councils with N242.100 billion, while the Federal Government got N103.757 billion.
Electronic Money Transfer Levy (N27.667 billion)
This relatively new revenue source generated N27.667 billion, with state governments receiving N13.833 billion, Local Government councils getting N9.683 billion, and the Federal Government allocated N4.150 billion.
Exchange Difference Revenue (N76.614 billion)