FG, states, LGs share N2.1trn as FAAC reports surge in VAT revenue
The Federation Account Allocation Committee (FAAC) has distributed a total of N2.1 trillion to the federal, state, and local governments as allocation for September 2025.
According to a communiqué issued after its October meeting chaired by Shamsudeen Ogunjimi, Accountant-General of the Federation, the total distributable revenue was drawn from a gross revenue of N3.05 trillion.
A statement by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, revealed that the revenue sources included statutory allocations, value-added tax (VAT), and the electronic money transfer levy (EMTL).
Of the total allocation, the federal government received N711.31 billion, states got N727.17 billion, local governments were allotted N529.95 billion, while oil-producing states received N134.95 billion as 13 percent derivation revenue. A total of N116.14 billion covered the cost of collection, with N835 billion earmarked for transfers, interventions, and refunds.
The report also showed a N150 billion increase in VAT revenue, rising to N872.63 billion in September from N722.61 billion in August. From this amount, N34.9 billion went for collection costs, and N25.1 billion for transfers and refunds. The remaining N812.59 billion was distributed among the three tiers of government — the federal government received N121.89 billion, states N406.30 billion, and local councils N284.41 billion.
FAAC noted that the gross statutory revenue for September was N2.13 trillion, lower by N710 billion compared to the previous month’s N2.84 trillion. The Electronic Money Transfer Levy also contributed N53.84 billion, shared among the three tiers of government.
While VAT, import duties, and EMTL showed significant increases, company income tax (CIT), excise duties, and customs levies recorded declines. Petroleum profit tax (PPT) and oil and gas royalties saw only marginal changes.
Meanwhile, Finance Minister Wale Edun did not preside over the FAAC meeting due to reported ill health. As a result, Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), led the Nigerian delegation to the World Bank and International Monetary Fund (IMF) meetings in Washington D.C. on October 12.
