…VAT revenue increased by N4.64bn
The Federation Account Allocation Committee (FAAC) has announced that it distributed a total of N1.68 trillion to the three tiers of government as federation allocation for April 2025.
This figure represents an increase of N110 billion compared to the N1.57 trillion allocated in March.
In a communiqué issued on Friday, following FAAC’s May meeting chaired by Wale Edun, the minister of finance and coordinating minister of the economy, the ministry stated that the total revenue available for distribution was drawn from a gross revenue of N2.848 trillion.
According to the statement from Mohammed Manga, director of information and public relations at the ministry, the gross revenue included statutory revenue, value-added tax (VAT), electronic money transfer levy (EMTL), and exchange difference.
The communiqué detailed that the federal government received N565.30 billion, states were allocated N556.74 billion, local government councils received N406.62 billion, and oil-producing states received N152.55 billion as derivation (13% of mineral revenue).
FAAC also noted that N101.05 billion was allocated for the cost of collection, while N1.06 trillion was earmarked for transfers, intervention, and refunds.
Manga reported that VAT revenue rose to N642.26 billion, compared to N637.61 billion distributed in the previous month, marking an increase of N4.64 billion.
“The communiqué issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the gross revenue available from the Value Added Tax (VAT) for April 2025 was N642.265 billion as against N637.618 billion distributed in the preceding month, resulting in an increase of N4.647 billion,” Manga said.
“From that amount, the sum of N25.691 billion was allocated for the cost of collection and the sum of N18.497 billion was given for transfers, intervention, and refunds. The remaining sum of N598.077 billion was distributed to the three tiers of government, with the Federal Government receiving N89.712 billion, the states getting N299.039 billion, and local government councils receiving N209.327 billion.
“Accordingly, the gross statutory revenue of N2.084 trillion received for the month was higher than the sum of N1.718 trillion received in the previous month by N365.595 billion. From the stated amount, N73.741 billion was allocated for the cost of collection, and a total sum of N1.047 trillion was designated for transfers, intervention, and refunds.
“The remaining balance of N962.882 billion was distributed as follows to the three tiers of government: the Federal Government received N431.307 billion, states got N218.765 billion, local government councils received N168.659 billion, and N144.151 billion was allocated for derivation revenue (13% for mineral-producing states).
“Additionally, out of the sum of N40.481 billion from the Electronic Money Transfer Levy (EMTL), N38.862 billion was distributed to the three tiers of government: the Federal Government received N5.829 billion, states got N19.431 billion, and local government councils received N13.602 billion. The remaining balance of N1.619 billion was allocated for the cost of collection.”
The director also mentioned that N81.40 billion from exchange differences was distributed to the three tiers of government.
He stated that from this amount, the federal government received N38.45 billion, the state received N19.50 billion, local government councils got N15.03 billion, while oil-producing states received N8.40 billion.
Manga added that several revenue streams, including the petroleum profit tax (PPT), oil and gas royalty, VAT, EMTL, excise duty, import duty, and CET levies, saw significant increases, although the company income tax (CIT) recorded a decrease.
The communiqué concluded by indicating that the total revenue distributed in April was drawn from statutory revenue of N962.88 billion, VAT of N598.07 billion, N38.86 billion from EMTL, and N81.40 billion from exchange differences.
In his opening remarks, Edun stressed that domestic revenue mobilisation is a critical component of Nigeria’s long-term path to sustainable development financing, and he thanked the committee for their resilience in carrying out their duties.
