The Federal Government, state governments, and local government councils shared a total of N2.103 trillion as revenue from the Federation Account for the month of September 2025. This was announced after the Federation Account Allocation Committee (FAAC) meeting held in Abuja on Friday.
According to a communique released by Bawa Mokwa, spokesperson for the Office of the Accountant General of the Federation, the September allocation was N97 billion lower than the N2.2 trillion shared in August 2025.
The shared revenue came from several sources. The breakdown includes:
Statutory Revenue: N1.239 trillion
Value Added Tax (VAT): N812.593 billion
Electronic Money Transfer Levy (EMTL): N51.684 billion
A total gross revenue of N3.054 trillion was collected in September, but deductions were made before sharing. These deductions include:
Cost of Collection: N116.149 billion
Transfers, Interventions, Refunds & Savings: N835.005 billion
Federal Government Gets N711bn
From the total distributable revenue:
The Federal Government received N711.314 billion
The State Governments received N727.170 billion
Local Government Councils got N529.954 billion
Oil-producing states received N134.956 billion as 13% derivation revenue
Breakdown by Revenue Source
1. Statutory Revenue (N1.239 trillion)
FG: N581.672 billion
States: N295.032 billion
LGs: N227.457 billion
Oil-producing states: N134.956 billion
2. Value Added Tax (N812.593 billion)
FG: N121.889 billion
States: N406.297 billion
LGs: N284.408 billion
This marked an increase of N150 billion from the N722.619 billion VAT collected in August. VAT is becoming a major contributor to government revenue as non-oil income rises.
3. Electronic Money Transfer Levy (N51.684 billion)
FG: N7.753 billion
States: N25.842 billion
LGs: N18.089 billion
Revenue Performance in September
Revenue from some sources showed improvement, while others declined.
Increased Revenue:
Import Duty
Value Added Tax (VAT)
Electronic Money Transfer Levy (EMTL)
Declined Revenue:
Companies Income Tax (CIT)
CET Levies
Marginal Increase:
Petroleum Profit Tax (PPT)
Slight Decrease:
Oil and Gas Royalties
Excise Duties
This mix reflects the continued fluctuation in the country’s revenue sources, especially from the oil sector, which still plays a key role in government funding.
The Federation Account Allocation Committee (FAAC) is a monthly meeting where revenue generated by the country is shared among the three tiers of government. The funds come from taxes, oil earnings, customs, and other government income. FAAC ensures that each level of government receives its due share to fund public services like education, health, roads, and salaries.
Nigeria has been working to improve non-oil revenue by increasing collections from VAT and levies like the EMTL. However, oil income remains unstable due to price changes in the global market and local production challenges.
The drop in statutory revenue in September from N2.838 trillion in August to N2.128 trillion is a decline of N710 billion, showing the need for continued diversification of the country’s revenue base.
Meanwhile, VAT collection rose, showing better compliance and broader consumption tax coverage, especially in the services and retail sectors.
