Abuja, June 18, 2025 – The Federation Account Allocation Committee has disclosed the disbursement of a total sum of ₦1.659 trillion to the three tiers of government for the month of May 2025, reflecting a marginal decrease from the ₦1.681 trillion shared in April. Despite the slight decline in overall allocation, Value Added Tax (VAT) revenue witnessed a significant increase of over ₦100 billion, underscoring a boost in domestic tax receipts.
The total distributable revenue for May was drawn from a gross collection of ₦2.942 trillion. Following statutory deductions, including ₦111.908 billion for collection costs and ₦1.171 trillion set aside for transfers, refunds, and other interventions, the net amount available for distribution stood at ₦1.659 trillion.
VAT receipts played a pivotal role in the disbursement. Collections rose to ₦742.820 billion in May from ₦642.265 billion in April, marking a surge of ₦100.555 billion. After deducting ₦29.71 billion for collection expenses and ₦21.39 billion for refunds and related adjustments, ₦691.714 billion was left for allocation among the federal, state, and local governments.
From the total pool, the Federal Government received ₦538.004 billion, state governments got ₦577.841 billion, while local government councils were allocated ₦419.968 billion. Additionally, the oil-producing states received ₦124.076 billion as their share of the 13% derivation revenue.
Specifically, from the VAT component, the Federal Government took ₦103.757 billion, states received ₦345.857 billion, and local governments were allotted ₦242.100 billion.
Other revenue heads contributing to the total included Companies Income Tax and import duties, which showed positive performance. However, earnings from petroleum profit tax, oil and gas royalties, and the Electronic Money Transfer Levy saw varying declines.
This monthly allocation remains critical for sustaining government operations and development projects across the federation. The notable rise in VAT signals a potential recovery in consumer activity and improved tax compliance, offering a silver lining amidst broader fiscal challenges.
