FAAC Distributes N1.7 Trillion to Federal, State, and Local Governments in January 2025

The financial disbursement, the Federation Account Allocation Committee (FAAC) announced the distribution of N1.703 trillion among the three tiers of government as the federation revenue for January 2025. The development was disclosed in a communiqué issued after FAAC’s February meeting, presided over by Wale Edun, Minister of Finance and Coordinating Minister of the Economy.

This announcement comes just a week after the committee had initially postponed its meeting due to a dispute between state governments and the Nigerian National Petroleum Company (NNPC) Limited over N1.7 trillion in remittances.

According to a statement by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, the allocation was drawn from a gross revenue of N2.641 trillion. The total amount included earnings from gross statutory revenue, value-added tax (VAT), and the electronic money transfer levy (EMTL).

From the N1.703 trillion revenue allocation, the distribution among the government tiers was as follows: Federal Government: N552.591 billion, State Governments: N590.614 billion, Local Government Councils: N434.567 billion, Oil-Producing States (Derivation Fund – 13% Mineral Revenue): N125.284 billion

Additionally, the FAAC noted that N107.786 billion was allocated for the cost of revenue collection, while N830.663 billion was set aside for transfers, interventions, and refunds.

The committee revealed that VAT revenue for January 2025 stood at N771.886 billion, a decline from the N849.561 billion distributed in the previous month, marking a decrease of N77.67 billion.

Of this amount: FAAC reported that gross statutory revenue for January 2025 surged by 33.6% to N1.848 trillion, compared to N1.226 trillion received in the previous month—a substantial increase of N622.125 billion.

From this revenue: N76.055 billion was allocated for revenue collection costs. N1.022 trillion was designated for transfers, interventions, and refunds.

The communiqué further highlighted an augmentation fund of N214 billion distributed to government tiers: Federal Government: N98.08 billion, States: N49.74 billion, Local Government Councils: N38.353 billion, Oil-Producing States: N27.82 billion

The FAAC report noted significant increases in VAT, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), excise duty, import duty, and Common External Tariff (CET) levies, while revenues from EMTL and oil and gas royalties saw a notable decline.