The Federal Government, state governments, and local government councils collectively received N1.703 trillion from the Federation Account in January 2025, marking a 19.6 percent increase from the N1.424 trillion shared in December 2024.
This was disclosed by the Office of the Accountant General of the Federation in a statement issued on Thursday by its Director of Press and Public Relations, Bawa Mokwa. The announcement followed the monthly Federation Account Allocation Committee FAAC meeting.
Breakdown of Revenue Distribution
According to the communiqué, total revenue for January 2025 stood at N2.641 trillion, exceeding the N2.310 trillion recorded in December. However, deductions included:
– N107.786 billion for the cost of collection
– N830.663 billion allocated for transfers, interventions, refunds, and savings
The N1.703 trillion distributed among the three tiers of government comprised:
– N749.727 billion in statutory revenue
– N718.781 billion from Value Added Tax VAT
– N20.548 billion from the Electronic Money Transfer Levy
– N214 billion as augmentation
From the total disbursement:
– The Federal Government received N552.591 billion
– State governments were allocated N590.614 billion
– Local government councils got N434.567 billion
– Oil-producing states received an additional N125.284 billion as 13 percent derivation revenue
Increase in Statutory Revenue and VAT Collections
The communiqué highlighted a rise in gross statutory revenue to N1.848 trillion in January, an increase of N622.125 billion from N1.226 trillion in December. VAT collections also grew, reaching N771.886 billion in January, up from N649.561 billion the previous month.
Allocation Breakdown from Statutory Revenue
– Federal Government – N343.612 billion
– State governments – N174.285 billion
– Local government councils – N134.366 billion
– Oil-producing states – N97.464 billion as derivation revenue
Allocation from VAT Revenue
– Federal Government – N107.817 billion
– State governments – N359.391 billion
– Local governments – N251.573 billion
Allocation from Electronic Money Transfer Levy
– Federal Government – N3.082 billion
– State governments – N7.192 billion
– Local governments – N10.274 billion
Distribution of the N214 Billion Augmentation
– Federal Government – N98.080 billion
– State governments – N49.747 billion
– Local governments – N38.353 billion
– Oil-producing states – N27.820 billion as 13 percent derivation revenue
Revenue Trends and Observations
FAAC noted increases in revenue collections from VAT, Petroleum Profit Tax, Companies Income Tax, Excise Duty, Import Duty, and CET Levies. However, there was a significant decline in receipts from the Electronic Money Transfer Levy and Oil and Gas Royalty.
The statement read, “The increase in revenue is a reflection of improved tax collection and remittances across various sectors.”
