FAAC Distributes N1.703 Trillion To Government Tiers For January 2025.
The Federation Account Allocation Committee (FAAC) has disbursed a total of N1.703 trillion to the three tiers of government for January 2025, following its February meeting chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The total revenue was drawn from a gross amount of N2.641 trillion.
The allocation breakdown includes N552.591 billion for the Federal Government, N590.614 billion for the States, and N434.567 billion for Local Government Councils. Additionally, N125.284 billion was allocated to oil-producing states as a 13% derivation from mineral revenue. Other distributions included N107.786 billion for collection costs and N830.663 billion for transfers, interventions, and refunds.
Increase in Statutory and VAT Revenues
FAAC’s communiqué indicated that gross revenue from Value Added Tax (VAT) for January 2025 stood at N771.886 billion, an increase of N122.325 billion compared to the previous month’s N849.561 billion. From this, N30.875 billion was allocated for collection costs, while N22.230 billion was designated for transfers, interventions, and refunds. The remaining N718.781 billion was distributed as follows:
– Federal Government: N107.817 billion
– States: N359.391 billion
– Local Government Councils: N251.573 billion
Statutory revenue also saw a rise, with N1.848 trillion recorded for January—N622.125 billion higher than the previous month’s N1.226 trillion. After deductions for collection costs (N76.055 billion) and transfers, interventions, and refunds (N1.022 trillion), the remaining N749.727 billion was shared among government tiers:
– Federal Government: N343.612 billion
– States: N174.285 billion
– Local Government Councils: N134.366 billion
– Derivation for Oil-Producing States: N97.464 billion
Electronic Money Transfer Levy and Additional Augmentations
From the Electronic Money Transfer Levy (EMTL), a total of N21.404 billion was distributed:
– Federal Government: N3.082 billion
– States: N7.192 billion
– Local Government Councils: N10.274 billion
– Collection Costs: N0.856 billion
FAAC also approved an augmentation of N214.000 billion to support government tiers:
– Federal Government: N98.080 billion
– States: N49.747 billion
– Local Government Councils: N38.353 billion
– Oil-Producing States: N27.820 billion
Revenue Trends and Future Outlook
According to FAAC, revenues from VAT, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty, and CET Levies increased significantly, while Electronic Money Transfer Levy (EMTL) and Oil and Gas Royalty experienced declines.
The total distributable revenue for January 2025 amounted to N1.703 trillion, comprising N749.727 billion in statutory revenue, N718.781 billion from VAT, N20.548 billion from EMTL, and N214.000 billion in augmentation.
This allocation highlights the government’s continued efforts to support fiscal stability across federal, state, and local levels while ensuring sustained economic growth through improved revenue collection and distribution.
