FAAC: FG, states, LGAs shared N1.7trn in January | VAT revenue increased by N122bn

The federation account allocation committee (FAAC) says it shared N1.703 trillion among the three tiers of government as the federation revenue in January 2025.

This was announced in a communiqué issued after FAAC’s February meeting, presided over by Wale Edun, the minister of finance and coordinating minister of the economy.

The development comes a week after the committee initially postponed the meeting due to a tussle between states and the Nigerian National Petroleum Company (NNPC) Limited over N1.7 trillion remittances.

According to a statement on Thursday by Mohammed Manga, director of information and public relations at the ministry, the allocation was drawn from a gross revenue of N2.641 trillion.

The committee said from the stated amount — inclusive of gross statutory revenue, value-added tax (VAT), and the electronic money transfer levy (EMTL) — the federal government received N552.591 billion, the states got N590.614 billion, the local government councils were given N434.567 billion, while the oil producing states received N125.284 billion as derivation (13 percent of mineral revenue).

The FAAC said the sum of N107.786 billion was given for the cost of collection while N830.663 billion was allocated for transfers, intervention and refunds.

The FAAC indicated that the gross revenue available from the VAT for the month of January 2025 was N771.886 billion as against N649.561 billion distributed in the preceding month — resulting in an increase of N122.325 billion.

“From that amount, the sum of N30.875 billion was allocated for the cost of collection and the sum of N22.230 billion given for transfers, intervention and refunds,” the statement reads.

“The remaining sum of N718.781 billion was distributed to the three tiers of government, of which the federal government got N107.817 billion, the states received N359.391 billion and local government councils got N251.573 billion.”

‘GROSS STATUTORY REVENUE INCREASED BY 33.6%’

The committee said the gross statutory revenue of N1.848 trillion received in January was higher than the N1.226 trillion received in the previous month by N622.125 billion or 33.6 percent.

“From the stated amount, the sum of N76.055 Billion was allocated for the cost of collection and a total sum of N1.022 trillion for transfers, intervention and refunds,” FAAC said.

“The remaining balance of N749.727 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N343.612 Billion, States received N174.285 Billion, the sum of N134.366 Billion was allocated to LGCs and N97.464 Billion was given to Derivation Revenue (13% Mineral producing States).

“Also, the sum of N21.404 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N3.082 Billion, States got N7.192 Billion, Local Government Councils received N10.274 Billion, while N0.856 Billion was allocated for Cost of Collection.”

Manga said the communique also highlighted an augmentation of N214 billion, which was distributed among the three tiers of government.

The FAAC said from this amount, the federal government received N98.08 billion, states were allocated N49.74 billion, local government councils got N38.353 billion, and oil-producing states received N27.82 billion.

The committee said VAT, petroleum profit tax (PPT), companies income tax (CIT), excise duty, import duty, and CET levies increased significantly, while EMTL and oil and gas royalty decreased considerably.