How The N2.103 Trillion FAAC was distributed in September
In its latest disbursement for September 2025, the Federation Account Allocation Committee FAAC distributed a total of ₦2.103 trillion to the three tiers of government, drawn from a gross revenue pool of ₦3.054 trillion collected during the month.
The breakdown of the ₦2.103 trillion distributable revenue was as follows:
- Federal Government: ₦711.314 billion
- State Governments: ₦727.170 billion
- Local Government Councils: ₦529.954 billion
- Derivation (13% to mineral-producing states): ₦134.956 billion
In addition, ₦116.149 billion was set aside as cost of revenue collection for the various agencies, while ₦835.005 billion was accounted for under transfers, special interventions, and refunds.
Revenue trends in September revealed a clear divergence between oil and non-oil sources. On the positive side, Value Added Tax (VAT) posted a strong month-on-month gain of ₦150.011 billion, rising from ₦722.619 billion in August to ₦872.630 billion in September. Electronic Money Transfer Levy (EMTL) also remained solid at ₦53.838 billion, and import duties recorded modest improvement. These increases helped offset significant shortfalls elsewhere.
Conversely, gross statutory revenue dropped sharply by ₦710.134 billion, declining from ₦2.838 trillion in August to ₦2.128 trillion in September. Other revenue lines that contracted included Company Income Tax (CIT), customs and excise duties, Common External Tariff (CET) levies, and royalties from oil and gas, reflecting continued volatility in the petroleum sector.
Overall, the growth in distributable federation revenue—despite the fall in statutory allocation—was driven primarily by the robust performance of non-oil taxes, particularly VAT, and higher volumes of electronic financial transactions captured through EMTL.
Looking ahead, sustaining and expanding Nigeria’s revenue base will require deliberate policy actions: aggressive diversification away from over-dependence on crude oil earnings, intensified taxpayer compliance enforcement, rapid plugging of existing leakages in statutory revenue streams, and deeper deployment of digital tools and automation across all collection agencies. These measures, if effectively implemented, will strengthen fiscal resilience and reduce the perennial vulnerability of federation accounts to global oil price swings.
