ABUJA, Nigeria — In a boost to Nigeria’s public finances, the Federation Account Allocation Committee (FAAC) distributed N1.681 trillion to the Federal Government, 36 states, and 774 Local Government Areas (LGAs) for April 2025. The funds, shared during a meeting in Abuja on Friday, mark a significant increase of N103 billion compared to the N1.578 trillion allocated in March, reflecting a stronger revenue performance for the month.
The FAAC meeting, a monthly gathering to divide Nigeria’s revenue among its tiers of government, revealed a diverse pool of income sources. The total distributable revenue included N962.882 billion in statutory revenue, N598.077 billion from Value Added Tax (VAT), N38.862 billion from the Electronic Money Transfer Levy (EMTL), and N81.407 billion from exchange rate differences. This financial windfall underscores Nigeria’s ongoing efforts to bolster its economy amid global uncertainties.
How the Money Was Shared
The Federal Government received the largest share, pocketing N565.307 billion. State governments collectively took home N556.741 billion, while LGAs across the country were allocated N406.627 billion. Additionally, oil-producing states received an extra N152.553 billion as a 13 percent derivation from mineral revenue, a nod to their contribution to Nigeria’s oil wealth.
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The revenue pool wasn’t without deductions. A total of N101.051 billion went toward collection costs, and N1.066 trillion was set aside for statutory transfers, refunds, and savings. Despite these deductions, the gross revenue for April reached an impressive N2.848 trillion, signaling a robust economic month.
Breaking Down the Revenue Sources
The statutory revenue of N962.882 billion was a standout, growing by N365.595 billion from March’s N1.718 trillion. The Federal Government claimed N431.307 billion of this, with states and LGAs receiving N218.765 billion and N168.659 billion, respectively. Oil-producing states also got N144.151 billion as their derivation share.
VAT revenue saw a modest uptick, rising to N642.265 billion from N637.618 billion in March. From the distributable VAT pool of N598.077 billion, the Federal Government received N89.712 billion, states got N299.039 billion, and LGAs secured N209.327 billion. The EMTL, totaling N38.862 billion, was split with N5.829 billion for the Federal Government, N19.431 billion for states, and N13.602 billion for LGAs.
Exchange rate differences contributed N81.407 billion, with the Federal Government taking N38.459 billion, states receiving N19.507 billion, and LGAs getting N15.039 billion. An additional N8.402 billion from this category went to oil-producing states as derivation funds.
What Drove the Revenue Growth?
FAAC noted significant increases in several revenue streams, including Petroleum Profit Tax, Oil and Gas Royalties, VAT, EMTL, Excise Duty, Import Duty, and CET Levies. However, Companies Income Tax saw a notable decline, highlighting the uneven performance of Nigeria’s revenue sources. The growth in non-oil revenue, in particular, points to the government’s push to diversify income streams, a critical move as global oil prices remain volatile.
A Step Toward Economic Stability
The April 2025 revenue figures reflect Nigeria’s complex economic landscape. While oil remains a key player, the uptick in non-oil revenue suggests progress in broadening the country’s financial base. For everyday Nigerians, these funds could translate into better infrastructure, healthcare, and education—if allocated wisely.
As FAAC continues its monthly distributions, all eyes will be on how these resources shape the nation’s future. With economic challenges still looming, the government’s ability to manage and invest these funds effectively will be crucial for sustainable growth.
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