In a historic milestone, the Federation Account Allocation Committee (FAAC) has disbursed an unprecedented ₦2.1 trillion among the federal, state, and local governments for the month of September 2025, the highest revenue allocation in Nigeria’s history.
The disbursement followed FAAC’s monthly meeting held in Abuja and was confirmed through a communiqué released by the Accountant-General of the Federation, Shamsudeen Ogunjimi, and a statement from the Ministry of Finance’s Director of Information, Mohammed Manga.
The breakdown;
– Federal Government: ₦711.31 billion
– State Governments: ₦727.17 billion
– Local Governments: ₦529.95 billion
– Oil-Producing States (13% derivation): ₦134.95 billion
– Cost of Collection: ₦116.14 billion
– Transfers, Refunds & Interventions: ₦835 billion
The total amount was drawn from a gross revenue of ₦3.05 trillion, sourced from statutory allocations, Value Added Tax (VAT), and the Electronic Money Transfer Levy (EMTL).
One of the major highlights of the allocation was the sharp increase in VAT collections, which rose by ₦150 billion, from ₦722.61 billion in August to ₦872.63 billion in September.
From this VAT pool N34.9 billion was allocated for cost of collection, N25.1 billion was used for transfers and refunds, the remaining ₦812.59 billion was distributed as follows: Federal Government: ₦121.89 billion
State Governments: ₦406.30 billion
Local Governments: ₦284.41 billion
While VAT, import duties, and EMTL posted strong performance, Company Income Tax (CIT), excise duties, and customs levies recorded a decline.
Petroleum Profit Tax (PPT) and oil & gas royalties saw marginal changes.
Gross statutory revenue stood at ₦2.13 trillion, which represents a decline of ₦710 billion compared to ₦2.84 trillion in August.
The EMTL contributed ₦53.84 billion to the overall revenue for September.
Minister of Finance Wale Edun was notably absent from the FAAC meeting due to health reasons.
In his absence, Central Bank Governor Olayemi Cardoso led Nigeria’s delegation to the World Bank and IMF Annual Meetings held in Washington, D.C. on October 12.
This record revenue sharing marks a significant boost for all tiers of government amid rising economic challenges.
Analysts say the increased VAT collection signals stronger consumer spending and a more effective tax administration.
However, concerns remain over declining corporate tax and customs revenues, which may indicate strain on business activity and external trade.
