According to an official statement released on Wednesday, Nigeria’s Federation Account Allocation Committee (FAAC) distributed N1.65 trillion amongst the federal, state, and local governments for the month of May.
The allocation represents a decrease of N30 billion compared to the previous month, when the committee shared N1.68 trillion in April.
The Ministry of Finance confirmed the figures in a communiqué issued following FAAC’s June 2025 meeting. Mohammed Manga, director of information and public relations at the finance ministry, signed the statement announcing that Wale Edun, minister of finance and coordinating minister of the economy, chaired the meeting.
The total distributable revenue came from gross earnings of N2.94 trillion collected by the government during May.
The N1.65 trillion shared amongst the three tiers of government comprised several revenue streams: statutory revenue (N863.89 billion), value-added tax (N691.71 billion), electronic money transfer levy (N27.66 billion), and exchange rate differences (N76.61 billion).
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The federal government received the largest share at N538 billion from this total amount. State governments collectively received N577.84 billion, whilst local government areas were allocated N419.96 billion. Oil-producing states received an additional N124.07 billion as derivation funds, representing 13 per cent of mineral revenue as mandated by the constitution.
The committee also set aside N111.90 billion to cover collection costs, with N1.17 trillion allocated for transfers, interventions and refunds.
VAT increased by N100bn in May
The committee reported significant growth in VAT collections during May. Gross VAT revenue reached N742.82 billion, compared to N642.26 billion in the preceding month – an increase of N100.56 billion.
After deducting N29.71 billion for collection costs and N21.39 billion for transfers, interventions and refunds, the remaining N691.71 billion was distributed amongst the three government levels. The federal government received N103.75 billion, states got N345.85 billion, and local governments were allocated N242.10 billion from VAT revenue.
Nigeria’s gross statutory revenue for May totalled N2.09 trillion, representing a modest increase of N10.02 billion from April’s N2.08 trillion. Collection costs consumed N81.042 billion of this amount, whilst N1.149 trillion went towards transfers, interventions and refunds. The remaining N863.89 billion was shared amongst government levels: the federal government received N393.51 billion, states got N199.59 billion, and local governments were allocated N153.88 billion. Oil-producing states received N116.89 billion as derivation revenue.
Also, the Electronic Money Transfer Levy generated N28.82 billion, which was distributed as follows: federal government (N4.15 billion), states (N13.83 billion), and local governments (N9.68 billion). Collection costs accounted for N1.15 billion.
Exchange rate differences contributed N76.61 billion to government coffers. The federal government received N36.57 billion from this source, states got N18.55 billion, local governments received N14.30 billion, and oil-producing states were allocated N7.17 billion.
