The Federation Account Allocation Committee (FAAC) has distributed ₦1.68 trillion to Nigeria's three tiers of government as federation allocation for April 2025, reflecting a ₦110 billion increase from March's ₦1.57 trillion distribution.

This announcement came following FAAC's May meeting chaired by Wale Edun, Minister of Finance and Coordinating Minister of the Economy. The allocation was derived from a total gross revenue of ₦2.848 trillion, comprising statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange difference.

Distribution Breakdown

The allocation was distributed as follows:

- Federal Government: ₦565.30 billion

- State Governments: ₦556.74 billion

- Local Government Councils: ₦406.62 billion

- Oil-producing States (13% derivation): ₦152.55 billion

Additionally, ₦101.05 billion was allocated for collection costs, while ₦1.06 trillion was designated for transfers, interventions, and refunds.

Revenue Sources

VAT revenue showed improvement, increasing to ₦642.26 billion from March's ₦637.61 billion—a growth of ₦4.64 billion. After deductions for collection costs and transfers, the remaining ₦598.07 billion was distributed among the three government tiers.

Statutory revenue received a significant boost, reaching ₦2.084 trillion—₦365.59 billion higher than the previous month. After deductions, ₦962.88 billion was distributed to the three levels of government.

The EMTL contributed ₦38.86 billion to the total allocation, while exchange differences added another ₦81.40 billion.

Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, noted that petroleum profit tax, oil and gas royalty, VAT, EMTL, excise duty, import duty, and CET levies all showed significant increases, though company income tax recorded a decline.