The Federal Government, 36 states, and 774 local government councils have shared a total of N2.103 trillion as revenue for September 2025, according to a communiqué issued after the monthly Federation Account Allocation Committee (FAAC) meeting held in Abuja on Thursday.
The disbursement, coordinated by the FAAC during its October session, includes funds generated from statutory revenue, Value Added Tax (VAT), and the Electronic Money Transfer Levy (EMTL).
The breakdown revealed that the total distributable revenue was made up of N1.239 trillion in statutory revenue, N812.593 billion from VAT, and N51.684 billion from EMTL.
According to FAAC’s official statement, Nigeria recorded a gross revenue inflow of N3.054 trillion for the month of September. However, after deductions for the cost of collection (N116.149 billion) and other transfers, interventions, refunds, and savings (N835.005 billion), the net revenue for distribution stood at N2.103 trillion.
The statutory revenue of N2.128 trillion collected in September was significantly lower than August’s N2.838 trillion, marking a decrease of N710.134 billion.
Meanwhile, VAT collections rose from N722.619 billion in August to N872.630 billion in September, representing a monthly increase of N150.011 billion.
Out of the N2.103 trillion shared, the Federal Government received N711.314 billion, while state governments were allocated N727.170 billion.
Local Government Councils received N529.954 billion, and an additional N134.956 billion was distributed to oil-producing states as 13 per cent derivation revenue.
A further breakdown showed that from the N1.239 trillion statutory revenue, the Federal Government received N581.672 billion, states got N295.032 billion, while local governments took home N227.457 billion.
The same N134.956 billion derivation fund was allocated from this pool to the states entitled to mineral revenue benefits.
From the N812.593 billion VAT revenue, the Federal Government received N121.889 billion, states shared N406.297 billion, and local governments got N284.408 billion.
Revenue from the Electronic Money Transfer Levy (N51.684 billion) was distributed with the Federal Government receiving N7.753 billion, states getting N25.842 billion, and local councils allocated N18.089 billion.
In terms of sectoral performance, the FAAC communiqué indicated that Import Duty, VAT, and EMTL saw increases, while Companies Income Tax (CIT) and CET Levies declined during the review month.
Petroleum Profit Tax (PPT) saw a marginal increase, whereas Oil and Gas Royalties and Excise Duties recorded slight drops.
This latest allocation followed the N2.2 trillion shared in August and reflects continued fluctuations in federally collected revenues.
Analysts noted that despite improved VAT collections, the significant drop in statutory revenue underscores ongoing volatility in oil receipts and company income tax, which are major components of the federation account.
As revenue challenges persist, fiscal experts have called on governments at all levels to intensify internal revenue generation and prudently manage allocations to meet rising public expectations and economic pressures.
