FAAC allocation to FG, States, LGs drop to N2.1trn, as gross revenues dip by 16%

The Federation Account Allocation Committee (FAAC) has disbursed a total sum of N2.103 trillion to the three tiers of government as federation allocation for the month of September 2025. This is a sharp decline from N2.225 trillion disbursed in the previous month.

The communique issued at the end of the committee meeting on Friday, indicated that the total sum was from August gross revenue N3.054 trillion. This revenue also represents a 15.9 percent decline from N3.635 trillion recorded in the previous month.

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Of the total amount disbursed in the period, the federal government received N711.314 billion, the states received N727.170 billion, the local government councils got N529.954 billion, while oil producing states received N134.956 billion as derivation, (13 percent of Mineral Revenue).

Also, the sum of N116.149 billion was given for the cost of collection, while N835.005 billion was allocated for transfers intervention and refunds.

“The total revenue distributable for the current month of September 2025, was drawn from Statutory Revenue of N2.239 trillion, Value Added Tax (VAT) of N812.593 billion and the sum of N51.684 billion from Electronic Money Transfer Levy (EMTL), bringing the total distributable amount for the month to N2.103 trillion,” it stated.

The communique showed that the gross revenue available from the Value Added Tax (VAT) for the month of September 2025, was N872.630 billion as against N722.619 billion distributed in the preceeding month, resulting in an increase of N150.011 billion.

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From the stated amount, the sum of N34.905 billion was allocated for the cost of collection and the sum of N25.132 billion given for transfers, intervention and refunds. “The remaining sum of N812.593 billion was distributed  to the three tiers of government, of which the federal government got N121.889 billion, the States received N406.297 billion and Local Government Councils got N284.408 billion.

“Accordingly, the Gross Statutory Revenue of N2.128 trillion received for the month was lower than the sum of N2.838 trillion received in the previous month by N710.134 billion. From the stated amount, the sum of N79.090 Billion was allocated for the cost of collection and a total sum of N809.873 Billion for Transfers, Intervention and Refunds.

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“The remaining  balance of  N1.239 Trillion was distributed as follows to the three tiers of government: federal government got the sum of N581.672 billion, States received N295.032 billion, the sum of N227.457 billion was allocated to LGCs and N134.956 billion was given to derivation revenue (13 percent mineral producing states),” it stated.

Also, the sum of N53.838 billion from  Electronic Money Transfer Levy (EMTL) was distributed to the three tiers of government as follows: the federal government received N7.753 billion, States got N25.842 billion, Local Government Councils received N18.089 billion, while N2.154 billion was allocated for cost of collection.