- VAT Revenue Rises By N100bn
By Kolawole Ojebisi
The Federation Account Allocation Committee (FAAC) has furnished the public with the details of how it shared a total sum of N1.65 trillion among the three tiers of government as allocation for May.
FAAC stated that the amount shared in May represents a decrease of N30 billion compared to the N1.68 trillion disbursed in April.
This is contained in a statement from the finance ministry on Wednesday, stating that the figure was confirmed in a communique issued at the end of the FAAC’s June 2025 meeting.
While giving a breakdown of the allocation, the ministry said the total revenue distributable was drawn from a gross revenue of N2.94 trillion.
It added that the total revenue distributable for May comprises a statutory revenue of N863.89 billion, value-added tax (VAT) of N691.71 billion, electronic money transfer levy (EMTL) of N27.66 billion, and the sum of N76.61 billion from exchange difference — bringing the total distributable amount for the month to N1.65 trillion.
Highlighting what each tier of government got from the distributable amount, the FAAC said the federal government received N538 billion, the states got N577.84 billion, the local governments had N419.96 billion.
The committee added that oil-producing states received N124.07 billion as derivation (13 percent of mineral revenue).
The communique said N111.90 billion was allocated for the cost of collection, while N1.17 trillion was allocated for transfers intervention and refunds.
Meanwhile, unlike the national revenue which suffered a decline, the gross revenue available from the VAT in May witnessed an increase of N100.56 billion.
According to FAAC a gross revenue of N742.82 billion as against N642.26 billion distributed in the preceeding month, was generated in May.
“From that amount, the sum of N29.71 billion was allocated for the cost of collection and the sum of N21.39 billion given for Transfers, Intervention and Refunds,” the statement read further.
“Accordingly, the Gross Statutory Revenue of N2.09 trillion received for the month was higher than the sum of N2.08 trillion received in the previous month by N10.02 billion,” the ministry said.
“From the stated amount, the sum of N81.042 billion was allocated for the cost of collection and a total sum of N1.149 trillion for Transfers, Intervention and Refunds.
“For the remaining balance of N863.89 billion, the federal government got the sum of N393.51 billion, states received N199.59 billion, while N153.88 billion was allocated to local governments and N116.89 billion was given to derivation revenue (13 percent mineral producing states).”
The ministry said the N28.82 EMTL revenue was shared with the federal government (N4.15 billion), states (N13.83 billion), and local governments (N9.68 billion), while N1.15 billion was allocated for cost of collection.
The communique added that from the N76.61 billion exchange difference revenue, the federal government got N36.57 billion, the state received N18.55 billion, local governments got N14.30 billion, while oil-producing states received N7.17 billion.
According to FAAC, the company income tax (CIT), VAT, and import duty were responsible for the significant increase of May VAT.
It added that petroleum profit tax (PPT), CET levies, oil and gas royalty, and EMTL recorded decreases, while excise duty increased only marginally.
