The Federation Account Allocation Committee (FAAC) has shared a total of ₦2.103 trillion among the federal, state, and local governments as revenue generated in September 2025.
The allocation was announced on Thursday in Abuja following FAAC’s monthly meeting chaired by the Federal Ministry of Finance.
According to a communiqué issued after the meeting, the total distributable revenue comprised ₦1.239 trillion in statutory revenue, ₦812.59 billion from Value Added Tax (VAT), and ₦51.68 billion from the Electronic Money Transfer Levy (EMTL).
FAAC stated that the gross revenue available for distribution in September stood at ₦3.054 trillion, out of which ₦116.15 billion was deducted as the cost of collection and ₦835 billion set aside for transfers, interventions, refunds, and savings.
Compared to August, statutory revenue dropped significantly by ₦710.13 billion, from ₦2.838 trillion to ₦2.128 trillion, while VAT collections rose sharply by ₦150 billion, from ₦722.6 billion to ₦872.6 billion.
Breakdown of Allocation
From the total ₦2.103 trillion distributed, the federal government received ₦711.31 billion, state governments got ₦727.17 billion, and local government councils received ₦529.95 billion. Oil-producing states were also allocated ₦134.95 billion as 13 percent derivation revenue.
A further breakdown showed that from the ₦1.239 trillion statutory revenue, the federal government received ₦581.67 billion, the states ₦295.03 billion, and the local councils ₦227.46 billion.
From the ₦812.59 billion VAT revenue, the federal government received ₦121.89 billion, while states and local governments got ₦406.30 billion and ₦284.40 billion, respectively.
Similarly, from the ₦51.68 billion EMTL, the federal government received ₦7.75 billion, the states ₦25.84 billion, and the local governments ₦18.08 billion.
Revenue Trends
FAAC noted that revenue from import duty, VAT, and EMTL improved during the period, while income from companies’ income tax (CIT) and common external tariff (CET) levies declined. Petroleum Profit Tax (PPT) recorded a slight rise, whereas oil and gas royalties and excise duties dropped marginally.
The meeting was attended by representatives from the Federal Ministry of Finance, the Office of the Accountant-General of the Federation, the Nigerian National Petroleum Company Limited (NNPCL), the Federal Inland Revenue Service (FIRS), and the Nigeria Customs Service (NCS), alongside state commissioners for finance and accountants-general.
The FAAC allocations remain a key fiscal mechanism for sustaining governance and development across Nigeria’s three tiers of government, despite concerns about declining statutory revenues and increasing fiscal pressure on subnational budgets.
