…VAT revenue surges by ₦150bn as federal, state and local governments receive massive disbursement
Nigeria has recorded its largest revenue disbursement in history, as the **Federation Account Allocation Committee (FAAC) shared a staggering ₦2.1 trillion among the federal, state, and local governments for September 2025.
The figure, the highest ever allocated in a single month, was drawn from a gross revenue of ₦3.05 trillion, according to a communiqué issued after FAAC’s October meeting chaired by Shamsudeen Ogunjimi, Accountant-General of the Federation.
A statement by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, confirmed that the funds came from statutory allocations, Value Added Tax (VAT), and the Electronic Money Transfer Levy (EMTL).
Of the total amount shared, the federal government received ₦711.31 billion, states ₦727.17 billion, local governments ₦529.95 billion, while oil-producing states got ₦134.95 billion as 13 percent derivation revenue. A total of ₦116.14 billion went to the cost of collection, with ₦835 billion earmarked for transfers, interventions, and refunds.
The report also showed a ₦150 billion surge in VAT revenue, climbing to ₦872.63 billion in September**, up from ₦722.61 billion in August. From this, ₦34.9 billion was used for collection costs and ₦25.1 billion for transfers and refunds, leaving ₦812.59 billion for distribution among the three tiers of government — with the federal government receiving ₦121.89 billion, states ₦406.30 billion, and local councils ₦284.41 billion.
Despite the VAT jump, FAAC noted that gross statutory revenue for September stood at ₦2.13 trillion, which was ₦710 billion lower than the ₦2.84 trillion recorded in August. The EMTL contributed ₦53.84 billion to the total.
While VAT, import duties, and EMTL recorded strong gains, company income tax (CIT), excise duties, and customs levies declined. Petroleum profit tax (PPT) and oil and gas royalties posted marginal changes.
Meanwhile, Finance Minister Wale Edun was absent at the FAAC meeting due to ill health. Consequently, Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), led Nigeria’s delegation to the World Bank Annual Meetings and the International Monetary Fund Annual Meetings in Washington D.C. on October 12.
