FAAC Disbursed ₦1.7 Trillion to Federal, States and LGs
In April 2025, the Federation Account Allocation Committee (FAAC) allocated ₦1.7 trillion to the three tiers of government in Nigeria, sourced from a total revenue pool of ₦2.8 trillion available for that month. The distribution by tier included ₦565 billion for the federal government, ₦556 billion for state governments, and ₦406 billion for local governments, with mineral-producing states receiving ₦152.6 billion as 13% derivation revenue.
Total deductions for collection costs in April were ₦101.1 billion, while total transfers, interventions, refunds, and savings reached ₦1.07 trillion. Revenue from Value Added Tax (VAT) was ₦642.3 billion, reflecting an increase of ₦4.6 billion from the previous month’s ₦637.6 billion.
The Electronic Money Transfer Levy (EMTL) contributed ₦38.9 billion, which was allocated as ₦5.8 billion to the federal government, ₦19.4 billion to state governments, and ₦13.6 billion to local governments. The increase in revenue was primarily driven by growth in Petroleum Profit Tax (PPT), Oil and Gas Royalty, EMTL, VAT, Excise, and Import duties.
However, there was a significant decline in Company Income Tax (CIT). The increase in VAT and EMTL revenue underscores the rising significance of consumption and digital transaction taxes, indicating a potential shift towards reducing reliance on oil revenue. Consequently, there is a pressing need to enhance tax compliance and reform CIT frameworks to promote business formalization and improve long-term tax performance.
