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By Daniel Adaji
The Federation Account Allocation Committee (FAAC) has shared a total of N2.103 trillion from the September 2025 Federation Account Revenue among the Federal Government, States, and Local Government Councils.
The distribution, made during the October 2025 FAAC meeting in Abuja, covered statutory allocations, Value Added Tax (VAT), and Electronic Money Transfer Levy (EMTL).
According to a communiqué issued by FAAC on Friday, the total distributable revenue for the month comprised N1.239 trillion in statutory revenue, N812.593 billion from VAT, and N51.684 billion from EMTL.
The document revealed that gross revenue of N3.054 trillion was available in September, from which N116.149 billion was deducted for the cost of collection, while N835.005 billion went to transfers, interventions, refunds, and savings.
From the N2.103 trillion total distributable revenue, the Federal Government received N711.314 billion, State Governments N727.170 billion, and Local Government Councils N529.954 billion. In addition, N134.956 billion (representing 13% of mineral revenue) was shared to oil-producing states as derivation revenue.
For the statutory revenue component (N1.239 trillion), the Federal Government received N581.672 billion, States N295.032 billion, Local Governments N227.457 billion, and oil-producing States N134.956 billion as 13% derivation.
Under the VAT revenue (N812.593 billion), the Federal Government got N121.889 billion, States N406.297 billion, and Local Governments N284.408 billion.
From the Electronic Money Transfer Levy (N51.684 billion), N7.753 billion went to the Federal Government, N25.842 billion to States, and N18.089 billion to Local Governments.
FAAC reported that the gross statutory revenue of N2.128 trillion for September was lower by N710.134 billion compared to N2.838 trillion recorded in August 2025. However, VAT collections improved, rising to N872.630 billion in September from N722.619 billion in August, representing an increase of N150.011 billion.
The communiqué highlighted that Import Duty, VAT, and EMTL collections increased significantly, while Companies Income Tax (CIT) and Common External Tariff (CET) Levies decreased considerably. Petroleum Profit Tax (PPT) recorded a marginal increase, whereas Oil and Gas Royalty and Excise Duty slightly declined.
FAAC is a constitutionally established body that ensures equitable distribution of revenue accrued to the Federation Account among the three tiers of government—Federal, State, and Local. The committee, which includes representatives of all tiers of government and key revenue-generating agencies, meets monthly to determine how revenues collected from oil and non-oil sources are shared.
Nigeria’s Federation Account primarily draws income from petroleum profits, company income taxes, customs duties, VAT, and levies. The allocations serve as the fiscal lifeline for states and local governments, many of which rely heavily on FAAC disbursements to fund salaries, infrastructure, and public services.