In the meeting of the Federation Account Allocation Committee (FAAC) held in Abuja, a total of N2.103 trillion was shared among the Federal Government, States, and Local Government Councils as revenue generated in September 2025.
This distribution was made from a gross revenue of N3.054 trillion for the month.The total distributable revenue consisted of N1.239 trillion from statutory revenue, N812.593 billion from Value Added Tax (VAT), and N51.684 billion from the Electronic Money Transfer Levy (EMTL).
After deductions for collection costs and interventions, the net distributable amount was allocated thus: the Federal Government received N711.314 billion, the States were allocated N727.170 billion, and Local Government Councils got N529.954 billion. Additionally, N134.956 billion was paid to oil-producing states as 13% derivation revenue.Statutory revenue distribution included N581.672 billion to the Federal Government, N295.032 billion to the States, and N227.457 billion to Local Governments. VAT proceeds were shared with N121.889 billion to the Federal Government, N406.297 billion to States, and N284.408 billion to Local Governments. Therefore, from the EMTL revenue, the Federal Government got N7.753 billion, States N25.842 billion, and Local Governments N18.089 billion.
Notably, September saw increased revenue collections from VAT, Import Duty, and EMTL, while Companies Income Tax, Common External Tariff levies, Oil and Gas Royalty, and Excise Duty recorded declines. Petroleum Profit Tax saw a marginal increase.
The September allocation was about N122 billion less than the N2.225 trillion shared in August 2025, reflecting a general decrease in gross revenue from the previous month.
The meeting featured representatives from key financial institutions including the Federal Ministry of Finance, Office of the Accountant-General of the Federation, Nigerian National Petroleum Company Limited, Federal Inland Revenue Service, Nigeria Customs Service, and State finance officials.
This allocation highlights the government’s continued channeling of funds across all levels of government, with emphasis on statutory and value-added tax revenues as significant contributors to the federation account.
