The Federation Account Allocation Committee (FAAC) has disbursed a total of N2.10 trillion to Nigeria’s federal, state, and local governments for the month of September 2025, according to the latest communique issued following the committee’s October meeting.
Chaired by the Accountant General of the Federation, Shamsudeen Ogunjimi, the meeting revealed that the distributable revenue was drawn from a gross total of N3.05 trillion. This amount encompasses statutory revenues, value-added tax (VAT), and the electronic money transfer levy (EMTL).
Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, provided a detailed breakdown of the allocations: the federal government received N711.31 billion, states were allocated N727.17 billion, while local government councils were given N529.95 billion. Additionally, oil-producing states received N134.95 billion as derivation funds, which represent 13 percent of mineral revenue.
The committee also designated N116.14 billion for revenue collection costs and allocated N835 billion towards transfers, interventions, and refunds across the three tiers of government.
VAT Revenue Experiences Remarkable Growth
FAAC reported a sharp rise in VAT revenue for September, which hit N872.63 billion, an increase of N150.01 billion compared to the N722.61 billion distributed in August. Out of the VAT total, N34.9 billion was used to cover collection costs, and N25.13 billion was assigned to transfers, interventions, and refunds. The balance of N812.6 billion was distributed among the federal, state, and local governments.
In terms of statutory revenue, the committee disclosed a figure of N2.128 trillion for the month, marking a decrease of N710.13 billion from the N2.838 trillion collected in August. From this, N79.09 billion was allocated to the cost of revenue collection, and N809.87 billion went toward transfers and refunds.
Following these deductions, the remaining sum of N1.239 trillion was shared as follows: the federal government received N581.67 billion, states got N295.03 billion, local government councils were given N227.46 billion, and derivation revenue of N134.95 billion was paid to mineral-producing states.
The electronic money transfer levy contributed N53.84 billion to the federation account, with the federal government receiving N7.75 billion, states N25.84 billion, and local councils N18.09 billion. About N2.15 billion was allocated for the cost of collection.
Mixed Performance Across Revenue Streams
While VAT, import duties, and the electronic money transfer levy showed notable increases, other revenue streams such as company income tax (CIT) and common external tariff (CET) levies saw declines. Petroleum profit tax (PPT) recorded a marginal increase, whereas oil and gas royalties and excise duties experienced slight reductions.
The monthly FAAC meeting was notably held without the presence of Finance Minister and Coordinating Minister of the Economy, Wale Edun, who has been unwell recently. In his absence, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso led the Nigerian delegation to the IMF and World Bank annual meetings in Washington D.C. on October 12.
Despite his health concerns, Edun was seen attending the O’DA Art Gallery booth during the 1-54 Contemporary African Art Fair in London, which runs from October 16 to 19 at Somerset House.
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