The Federation Account Allocation Committee (FAAC) announced that a total sum of N1.65 trillion was shared among the three tiers of government as allocation for the month of May 2025. This figure represents a slight decrease of N30 billion when compared to the N1.68 trillion shared in April. The confirmation of this allocation was made in a communique issued at the conclusion of FAAC’s June 2025 meeting, chaired by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. The statement was signed by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, and further corroborated by Bawa Mokwa from the Office of the Accountant General of the Federation.

The total distributable revenue for May was drawn from a gross revenue of N2.94 trillion. This distributable amount comprised N863.89 billion from statutory revenue, N691.71 billion from Value Added Tax (VAT), N27.66 billion from Electronic Money Transfer Levy (EMTL), and N76.61 billion from exchange difference. From this total distributable sum, the federal government received N538 billion, state governments collectively received N577.84 billion, and local governments were allocated N419.96 billion. Additionally, oil-producing states received N124.07 billion as derivation funds, representing 13 percent of mineral revenue.

Further details from the FAAC meeting revealed that N111.90 billion was allocated for the cost of collection, while N1.17 trillion was designated for transfers, interventions, and refunds. The committee noted a significant increase in VAT collections for May, with gross VAT revenue reaching N742.82 billion, which is N100.56 billion higher than the N642.26 billion collected in the preceding month. After deducting N29.71 billion for collection costs and N21.39 billion for transfers, interventions, and refunds, the remaining N691.71 billion from VAT was distributed as follows: N103.75 billion to the federal government, N345.85 billion to states, and N242.10 billion to local governments.

Regarding statutory revenue, the gross amount received for May stood at N2.09 trillion, a marginal increase of N10.02 billion from the N2.08 trillion recorded in April. From this, N81.042 billion was allocated for collection costs and N1.149 trillion for transfers, interventions, and refunds. The remaining balance of N863.89 billion from statutory revenue was distributed, with the federal government receiving N393.51 billion, states N199.59 billion, local governments N153.88 billion, and oil-producing states N116.89 billion as derivation revenue.

The Electronic Money Transfer Levy (EMTL) generated N27.66 billion in distributable revenue. From this, the federal government received N4.15 billion, states N13.83 billion, and local governments N9.68 billion, after accounting for N1.15 billion in collection costs. Similarly, from the N76.61 billion generated from exchange differences, the federal government received N36.57 billion, states N18.55 billion, local governments N14.30 billion, and oil-producing states N7.17 billion as derivation revenue.

The FAAC also highlighted general trends in revenue performance for the month. Company Income Tax (CIT), VAT, and Import Duty saw significant increases. Conversely, Petroleum Profit Tax (PPT), CET levies, Oil and Gas Royalty, and Electronic Money Transfer Levy (EMTL) recorded decreases. Excise Duty, however, showed only a marginal increase.