By Peter Omopo
The Federation Account Allocation Committee (FAAC) has shared a total of ₦2.103 trillion in revenue among the three tiers of government for September 2025 — one of the highest monthly allocations recorded so far this year.
This was disclosed in a communiqué issued at the end of FAAC’s October meeting held in Abuja and contained in a statement signed by Bawa Mokwa, Director of Press and Public Relations, Office of the Accountant-General of the Federation.
According to the communiqué, the total distributable revenue for September comprised ₦1.239 trillion from statutory allocations, ₦812.59 billion from Value Added Tax (VAT), and ₦51.68 billion from the Electronic Money Transfer Levy (EMTL).
“A total sum of ₦2.103 trillion, being September 2025 Federation Account Revenue, has been shared among the Federal Government, States, and Local Government Councils,” the statement read.
Breakdown of allocations
Out of the ₦2.103 trillion shared:
- The Federal Government received ₦711.31 billion;
- State governments received ₦727.17 billion;
- Local Government Councils got ₦529.95 billion;
- While ₦134.96 billion was paid to oil-producing states as 13% derivation from mineral revenue.
The disbursement represents a 16% increase from the ₦1.813 trillion shared in August 2025 and a 22% rise compared to July’s ₦1.728 trillion.
FAAC attributed the consistent growth — the fourth consecutive increase this year — to improved VAT performance, stronger digital transaction levies, and moderate recovery in oil prices.
From the ₦1.239 trillion statutory revenue, the Federal Government received ₦581.67 billion, states got ₦295.03 billion, local governments received ₦227.46 billion, while ₦134.96 billion went to derivation beneficiaries.
For VAT, the Federal Government received ₦121.89 billion, states received ₦406.30 billion, and local governments got ₦284.41 billion.
From the ₦51.68 billion generated as EMTL, the Federal Government collected ₦7.75 billion, states received ₦25.84 billion, and local councils got ₦18.09 billion.
FAAC revenue trends
FAAC reported that gross statutory revenue for September stood at ₦2.128 trillion, a decline of ₦710 billion from the ₦2.838 trillion recorded in August. However, VAT collections rose sharply to ₦872.63 billion, up ₦150 billion from August’s ₦722.62 billion, reflecting improved compliance and consumer activity.
The total gross revenue available for September stood at ₦3.054 trillion, up from ₦2.838 trillion in August, signalling a stronger performance from non-oil sectors.
After deductions of ₦116.15 billion for the cost of revenue collection and ₦835 billion for transfers, interventions, refunds, and savings, the net ₦2.103 trillion was distributed to the three tiers of government.
Sector performance
FAAC noted that import duties, VAT, and EMTL receipts showed strong growth in the month under review, driven by rising non-oil activity and digital transaction expansion.
However, revenues from Companies Income Tax (CIT), Common External Tariff (CET) levies, Oil and Gas Royalties, and Excise Duty recorded declines due to fluctuating oil prices and production challenges.
The FAAC meeting reaffirmed the committee’s commitment to ensuring transparent and equitable distribution of revenues from the Federation Account — the central pool where all major federally collected revenues, including crude oil sales, taxes, and levies, are deposited before allocation to the Federal, state, and local governments.
