FAAC Disburses ₦1.703trn to Federal, State, Local Governments as January Revenue
The Federation Account Allocation Committee (FAAC) has disbursed a total of ₦1.703 trillion as January 2025 federation account revenue to the federal, state, and local governments in Nigeria.
This disbursement follows the conclusion of the February 2025 FAAC meeting, which was held in Abuja. The meeting comes after a deadlock during the previous meeting over alleged discrepancies in funds remitted by the Nigerian National Petroleum Company Limited (NNPCL).
The ₦1.703 trillion distributable revenue comprises several components:
- ₦749.727 billion in distributable statutory revenue
- ₦718.781 billion from Value Added Tax (VAT)
- ₦20.548 billion from electronic money transfer levy revenue
- ₦214 billion in revenue augmentation
The FAAC communiqué, issued on Thursday, revealed that the total gross revenue for January 2025 stood at ₦2.641 trillion. However, deductions for the cost of collection amounted to ₦107.786 billion, while total transfers, interventions, refunds, and savings accounted for ₦830.663 billion.
According to a statement from Bawa Mokwa, the Director of Information at the Office of the Accountant-General of the Federation, gross statutory revenue for January 2025 was ₦1.848 trillion. This marked an increase of ₦622.125 billion compared to December 2024, when ₦1.226 trillion was received. Additionally, VAT gross revenue for January 2025 amounted to ₦771.886 billion, which was ₦122.325 billion higher than the ₦649.561 billion in December 2024.
The breakdown of the ₦1.703 trillion total distributable revenue is as follows:
- Federal Government: ₦552.591 billion
- State Governments: ₦590.614 billion
- Local Government Areas (LGAs): ₦434.567 billion
- Derivation Revenue (13% of mineral revenue): ₦125.284 billion, shared among the benefiting states.
For the ₦749.727 billion distributable statutory revenue:
- Federal Government: ₦343.612 billion
- State Governments: ₦174.285 billion
- Local Government Areas: ₦134.366 billion
- Derivation Revenue: ₦97.464 billion, shared among the benefiting states.
From the ₦718.781 billion distributable VAT revenue:
- Federal Government: ₦107.817 billion
- State Governments: ₦359.391 billion
- Local Government Areas: ₦251.573 billion
The federal government received ₦3.082 billion from the ₦20.548 billion revenue from electronic money transfer levies, with states receiving ₦7.192 billion and LGAs getting ₦10.274 billion.
Finally, from the ₦214 billion in revenue augmentation:
- Federal Government: ₦98.080 billion
- State Governments: ₦49.747 billion
- Local Government Areas: ₦38.353 billion
- Derivation Revenue: ₦27.820 billion, shared among the specific states.
The FAAC meeting marks another step in ensuring the distribution of the country’s revenue, with all levels of government receiving their respective shares for development and other activities.
