By Ebenezer Mabinuola
The Federation Account Allocation Committee (FAAC) has disbursed a total of N1.681 trillion to the three tiers of government—federal, states, and local councils—from revenue generated in April 2025. The allocation followed the committee’s monthly meeting held in Abuja and chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The funds were drawn from a gross revenue pool of N2.848 trillion, made up of statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange rate gains. After deducting N1.066 trillion for statutory transfers, interventions, and refunds, and N101.051 billion as the cost of revenue collection, the net balance was distributed.
Distribution by Tier of Government:
- Federal Government: N565.31 billion
- State Governments: N556.74 billion
- Local Government Councils: N406.63 billion
- Oil-Producing States (13% Derivation): N152.55 billion
Revenue Stream Breakdown:
- Statutory Revenue: N2.084 trillion was collected, with N962.88 billion shared after deductions.
- VAT: Revenue rose slightly to N642.27 billion, with N598.08 billion distributed.
- EMTL: From N40.48 billion collected, N38.86 billion was shared.
- Exchange Difference: N81.41 billion was distributed from exchange rate gains.
Highlights & Trends:
The communiqué from the meeting indicated robust performance in revenue categories including Petroleum Profit Tax, Oil and Gas Royalties, VAT, and EMTL, suggesting improved oil output and steady non-oil revenue growth. However, Company Income Tax (CIT) recorded a decline, reflecting possible slowdowns in corporate earnings.
This disbursement reflects the federal government’s continued efforts to enhance non-oil revenue streams and maintain fiscal support for states and local governments amid broader economic reforms. The significant exchange rate gains also suggest the naira’s depreciation may be contributing to higher naira-denominated revenues from foreign exchange inflows.
