The Federation Account Allocation Committee (FAAC) has disbursed N2.103 trillion in revenue for September 2025 to the Federal Government, states, and local government councils—one of the highest monthly allocations recorded so far this year.
The figure was disclosed in a communiqué issued after FAAC’s October meeting held in Abuja. The document, signed by Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant-General of the Federation, outlined the breakdown of the distributed funds.
According to the statement, the total distributable revenue comprised:
- N1.239 trillion from statutory sources,
- N812.59 billion from Value Added Tax (VAT), and
- N51.68 billion from the Electronic Money Transfer Levy (EMTL).
“A total sum of N2.103 trillion, representing the Federation Account Revenue for September 2025, has been shared among the Federal Government, State Governments, and Local Government Councils,” the communiqué stated.
Revenue Breakdown
- Federal Government: N711.31 billion
- State Governments: N727.17 billion
- Local Government Councils: N529.95 billion
- Oil-producing States (13% derivation): N134.96 billion
From the N1.239 trillion statutory allocation, the Federal Government received N581.67 billion, states got N295.03 billion, and local governments received N227.46 billion. The N134.96 billion derivation fund went to eligible oil-producing states.
The VAT revenue of N812.59 billion was shared as follows:
- Federal Government: N121.89 billion
- States: N406.30 billion
- Local Governments: N284.41 billion
From the EMTL pool of N51.68 billion:
- Federal Government: N7.75 billion
- States: N25.84 billion
- Local Governments: N18.09 billion
Revenue Performance and Trends
The September disbursement marks a 16% increase over August’s N1.813 trillion allocation and a 22% rise compared to July’s N1.728 trillion. It also exceeds the N1.9 trillion shared in May, continuing a four-month streak of revenue growth in 2025.
This upward trend is largely attributed to stronger VAT collections, improved receipts from electronic transactions, and a moderate rebound in global oil prices.
Gross revenue available in September totalled N3.054 trillion, up from N2.838 trillion in August, signaling increased non-oil revenue performance despite a dip in oil-related earnings.
However, after deductions of N116.15 billion for collection costs and N835 billion for statutory transfers, interventions, refunds, and savings, a net distributable amount of N2.103 trillion remained for sharing.
Sector Highlights
The FAAC report noted the following revenue developments:
- Increases: Import Duty, VAT, and EMTL revenues all rose significantly, reflecting stronger contributions from non-oil and digital sectors.
- Declines: Companies Income Tax (CIT), Common External Tariff (CET) levies, Oil and Gas Royalties, and Excise Duties experienced drops, while Petroleum Profit Tax (PPT) showed only marginal growth.
These trends highlight ongoing volatility in crude production and global oil markets, even as the non-oil revenue base continues to strengthen.
FAAC’s mandate includes the equitable distribution of federally collected revenues—such as oil proceeds, taxes, and levies—among Nigeria’s three tiers of government, following a constitutionally approved formula.
