The Federation Accounts Allocation Committee (FAAC) shares a total of N1.681 trillion in revenue generated in April 2025 among the Federal Government, 36 States, and 774 Local Government Councils across Nigeria. This distribution, announced during the FAAC meeting in Abuja on Friday, marks an increase of N103 billion compared to the N1.578 trillion allocated in March 2025.
The revenue-sharing framework in Nigeria has long been a contentious issue, with states often expressing dissatisfaction over their allocations. The disparity in the distribution can lead to tensions among states, especially those that rely heavily on federal allocations for their budgets. This recent increase in revenue, however, provides a temporary respite for many states facing fiscal challenges.
According to the communiqué released at the conclusion of the meeting, the total distributable revenue for April 2025 comprised statutory revenue amounting to N962.882 billion, Value Added Tax (VAT) revenue of N598.077 billion, Electronic Money Transfer Levy (EMTL) revenue of N38.862 billion, and an Exchange Difference of N81.407 billion. These figures reflect the complexities of Nigeria’s revenue generation system, where fluctuations in oil prices and economic activities directly impact revenue streams.
The Federal Government received a total of N565.307 billion from the allocation, while States collectively received N556.741 billion. The Local Government Councils were allocated N406.627 billion, with an additional N152.553 billion distributed to oil-producing states as a 13 percent derivation from mineral revenue. This highlights the ongoing debate around fiscal federalism in Nigeria, where oil-producing states often argue for greater shares of revenue due to their contributions to the national economy.
FAAC reported a gross total revenue of N2.848 trillion available in April. However, deductions of N101.051 billion for the cost of revenue collection and N1.066 trillion for statutory transfers, refunds, and interventions were made. This raises questions about the efficiency of revenue collection mechanisms in Nigeria and whether they adequately support the needs of the states and local councils.
The gross statutory revenue for April stood at N2.084 trillion, representing an increase of N365.595 billion over the N1.718 trillion recorded in March. Similarly, gross VAT revenue saw a slight rise to N642.265 billion in April, compared to N637.618 billion in the preceding month, illustrating a growth trend that may not be sustainable without broader economic reforms.
The breakdown of the N962.882 billion distributable statutory revenue shows the Federal Government receiving N431.307 billion, with states getting N218.765 billion and Local Government Councils receiving N168.659 billion. This allocation structure has been a subject of criticism, as many states argue that the federal government retains too large a share, limiting the financial autonomy necessary for local development. The shares is to lg and states is considered too small.
From this amount, N144.151 billion was shared as a 13 percent derivation to oil-producing states, reinforcing the need for a fairer distribution system that recognizes both contribution and need. In terms of VAT, the Federal Government received N89.712 billion, States received N299.039 billion, and Local Government Councils received N209.327 billion from the N598.077 billion pool. This distribution reflects the significant role that VAT plays in Nigeria’s revenue structure, particularly in diversifying income sources beyond oil.
Revenue from the Electronic Money Transfer Levy (EMTL), totaling N38.862 billion, was distributed with the Federal Government receiving N5.829 billion, States N19.431 billion, and Local Governments N13.602 billion. This new revenue source underscores the necessity for innovative taxation mechanisms that can enhance government revenues in a rapidly digitizing economy.
Additionally, from the N81.407 billion realized as Exchange Difference, the Federal Government received N38.459 billion, States N19.507 billion, and Local Government Councils N15.039 billion, with N8.402 billion shared as a 13 percent derivation to eligible states. These figures illustrate the complexities of Nigeria’s revenue-sharing arrangements, which are often influenced by fluctuating market conditions.
FAAC further disclosed significant increases in revenue from Petroleum Profit Tax (PPT), Oil and Gas Royalties, VAT, EMTL, Excise Duty, Import Duty, and CET Levies during the review period. However, revenue from Companies Income Tax (CIT) recorded a considerable decline, raising concerns about the overall health of the business environment in Nigeria.
The April 2025 revenue performance reflects continued volatility in the federation’s income sources, even as government efforts to improve non-oil revenue generation appear to be yielding positive results. As Nigeria navigates its fiscal landscape, the need for a more equitable revenue-sharing formula remains a pressing conversation among policymakers, stakeholders, and citizens alike.