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The Federal Government, state governments, and local government councils have shared a total of N1.678 trillion as Federation Account revenue for February 2025, marking a slight drop from the N1.703 trillion disbursed in January.
The decline is attributed to lower revenue from Value Added Tax (VAT), Petroleum Profit Tax (PPT), and Companies Income Tax (CIT), according to a communiqué issued after the Federation Account Allocation Committee (FAAC) meeting in Abuja.
The announcement was made in a press statement on Saturday by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation.
Breakdown of February Revenue Distribution
The N1.678 trillion shared among the three tiers of government comprised:
- N827.633 billion from statutory revenue
- N609.430 billion from VAT
- N35.171 billion from the Electronic Money Transfer Levy (EMTL)
- N28.218 billion from solid minerals revenue
- N178 billion as an augmentation
- The total gross revenue for February stood at N2.344 trillion, but deductions of N89.092 billion were made for the cost of collection, while N577.097 billion was allocated for transfers, interventions, refunds, and savings.
Declining Revenue Streams Impact Allocation
Gross statutory revenue fell to N1.653 trillion, representing a N194.664 billion decrease from the N1.848 trillion recorded in January. Similarly, VAT revenue dropped to N654.456 billion, down N117.430 billion from the previous month’s N771.886 billion.
Despite an increase in revenue from Oil and Gas Royalty and EMTL, the overall distributable revenue declined due to the reductions in VAT and other major tax sources.
How the Revenue Was Shared
From the total N1.678 trillion:
The Federal Government received N569.656 billion
State governments received N562.195 billion
Local government councils received N410.559 billion
Oil-producing states received N136.042 billion as 13% derivation revenue
Statutory Revenue (N827.633 billion)
FG: N366.262 billion
States: N185.773 billion
LGs: N143.223 billion
Derivation revenue: N132.374 billion
VAT Revenue (N609.430 billion)
FG: N91.415 billion
States: N304.715 billion
LGs: N213.301 billion
EMTL Revenue (N35.171 billion)
FG: N5.276 billion
States: N17.585 billion
LGs: N12.310 billion
Solid Minerals Revenue (N28.218 billion)
FG: N12.933 billion
States: N6.560 billion
LGs: N5.057 billion
Derivation to mineral-producing states: N3.668 billion
Augmentation (N178 billion)
FG: N93.770 billion
States: N47.562 billion
LGs: N36.668 billion
The FAAC meeting, chaired by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, was attended by the Accountant General of the Federation, Shamseldeen Ogunjimi, and other senior government officials.
The government remains committed to improving revenue streams and ensuring the effective distribution of resources among the three tiers for economic growth and development.
