Who Got What? Tension As FG, States, LGs Divide ₦1.681 Trillion April Revenue

At its May 2025 meeting chaired by the Minister of Finance, Wale Edun, the Federation Account Allocation Committee (FAAC) disbursed a total of ₦1.681 trillion to the federal, state, and local governments as allocation for April. This amount was drawn from a gross revenue pool of ₦2.848 trillion.

The disbursed funds included receipts from Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Rate Gains. From this total, the Federal Government received ₦565.307 billion, States got ₦556.741 billion, and Local Government Councils were allocated ₦406.627 billion. Additionally, ₦152.553 billion was distributed to oil-producing states as 13% derivation from mineral revenue.

According to a statement by Mohammed Manga, spokesperson for the Finance Ministry, ₦101.051 billion was earmarked for the cost of revenue collection, while ₦1.066 trillion was allocated for transfers, interventions, and refunds.

The communiqué from the meeting also disclosed that VAT revenue for April stood at ₦642.265 billion, slightly up from ₦637.618 billion in March. From this, ₦25.691 billion went to collection costs and ₦18.497 billion to transfers and refunds, leaving ₦598.077 billion for distribution. The breakdown of this was:

• Federal Government: ₦89.712 billion

• States: ₦299.039 billion

• Local Government Councils: ₦209.327 billion

Furthermore, gross statutory revenue for the month amounted to ₦2.084 trillion, a notable increase of ₦365.595 billion compared to March’s ₦1.718 trillion. From this, ₦73.741 billion was allocated for collection costs, and ₦1.047 trillion for transfers and refunds. The remaining ₦962.882 billion was distributed as follows:

• Federal Government: ₦431.307 billion

• States: ₦218.765 billion

• LGAs: ₦168.659 billion

• Derivation to oil-producing states: ₦144.151 billion

In addition, of the ₦40.481 billion collected from EMTL, ₦38.862 billion was shared among the three tiers of government:

• Federal Government: ₦5.829 billion

• States: ₦19.431 billion

• Local Governments: ₦13.602 billion
  The balance of ₦1.619 billion covered collection costs.

Also highlighted was an ₦81.407 billion gain from exchange rate differentials, which was distributed as follows:

• Federal Government: ₦38.459 billion

• States: ₦19.507 billion

• LGAs: ₦15.039 billion

• Oil-producing states (13% derivation): ₦8.402 billion

While revenue sources such as Petroleum Profit Tax (PPT), Oil and Gas Royalties, VAT, EMTL, Excise Duty, Import Duty, and CET Levies showed significant growth, Company Income Tax (CIT) recorded a decline.

The total distributable revenue for April 2025 comprised ₦962.882 billion from statutory revenue, ₦598.077 billion from VAT, ₦38.862 billion from EMTL, and ₦81.407 billion from exchange rate gains—bringing the grand total to ₦1.681 trillion.

In his opening remarks, Minister Wale Edun stressed that boosting domestic revenue generation is vital for Nigeria’s journey toward long-term, sustainable development financing.