The Federation Account Allocation Committee has shared a total of N2.103tn in revenue among the Federal, state and local governments for September 2025, reflecting one of the highest monthly disbursements so far this year.
The figure was disclosed in a communiqué issued at the end of FAAC’s October meeting held in Abuja and contained in a statement signed by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, on Friday.
According to the statement, the total distributable revenue comprised N1.239tn from statutory allocations, N812.59bn from Value Added Tax, and N51.68bn from the Electronic Money Transfer Levy.
The statement read, “A total sum of N2.103 trillion, being September 2025 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”
Out of the N2.103tn shared, the Federal Government received N711.31bn, while states got N727.17bn. The 774 Local Government Councils shared N529.95bn, and oil-producing states received N134.96bn as 13 per cent derivation from mineral revenue.
The disbursement represents a 16 per cent increase from the N1.813 trillion shared in August 2025 and a 22 per cent rise compared to the N1.728 trillion allocated in July.
This upward trend marks the fourth consecutive month of revenue growth in 2025, largely driven by improved VAT performance, digital transaction levies, and moderate oil price recovery.
The latest figure also surpasses the N1.9 trillion shared in May 2025.
From the N1.239tn statutory revenue, the Federal Government took N581.67bn, states received N295.03bn, local councils got N227.46bn while derivation accounted for N134.96bn.
For VAT, the Federal Government received N121.89bn, states got N406.30bn and local governments received N284.41bn.
“Gross statutory revenue of N2.128tn was received for September 2025. This was lower than the sum of N2.838tn received in the month of August 2025 by N710.134bn. Gross revenue of N872.630bn was available from the Value Added Tax in September 2025. This was higher than the N722.619bn available in the month of August 2025 by N150.011bn.
“The communiqué stated that from the N2.103 trillion total distributable revenue, the Federal Government received a total sum of N711.314bn and the State Governments received a total sum of N727.170bn. The Local government Council received N529.954bn, while the sum of N134.956bn (13 per cent of mineral revenue) was shared with the benefiting State as derivation revenue,” the statement added.
Meanwhile, from the N51.68bn EMTL, the Federal Government collected N7.75bn, states got N25.84bn and local councils received N18.09bn.
The total gross revenue available in September stood at N3.054tn, compared to N2.838tn recorded in August, indicating stronger non-oil performance despite a decline in crude-related receipts.
However, after N116.15bn was deducted for the cost of revenue collection and N835bn set aside for transfers, interventions, refunds and savings, N2.103tn was left for sharing among the three tiers of government.
The FAAC communiqué showed that gross statutory revenue dropped to N2.128 trillion in September, down by N710bn from the N2.838 and trillion recorded in August.
In contrast, VAT collections surged to N872.63bn, an increase of N150bn from the previous month’s N722.62bn, while EMTL revenue also recorded a significant improvement.
FAAC noted that Import Duty, VAT, and EMTL receipts increased significantly in the month under review, signalling a stronger performance from non-oil sectors and digital transactions.
However, Companies Income Tax and Common External Tariff levies fell sharply, while Petroleum Profit Tax recorded only marginal growth. Oil and Gas Royalty and Excise Duty also dipped slightly, reflecting the persistent challenges in crude production and global oil price volatility.
This is the central pool of money where all major federally collected revenues, including crude oil sales, taxes, and duties, are first deposited.
FAAC’s role is to ensure these funds are distributed according to a statutorily defined formula to the three tiers of government.
