By Victor Osula, Abuja
The Federation Allocation Account Committee (FAAC) recently announced the distribution of N2.103 trillion to the Federal Government, states, and local councils as part of the September 2025 Federation Account Revenue. While this figure reflects a slight decline from the N2.2 trillion allocated in August, the financial landscape is still robust, showcasing Nigeria’s ongoing economic adaptations and resilience.
According to a communiqué from the Office of the Accountant General of the Federation, represented by spokesperson Bawa Mokwa, the FAAC meeting held in Abuja on Friday laid out the specifics of this allocation. The total distributable revenue included N1.239 trillion in statutory revenue, N812.593 billion from Value Added Tax (VAT), and N51.684 billion from the Electronic Money Transfer Levy (EMTL). Notably, the overall gross revenue for September reached N3.054 trillion, but after deductions for various costs, interventions, and savings totaling N951.154 billion, the distributable amount was set.
There was a remarkable jump in VAT revenue, with September’s collections at N872.630 billion, an increase of N150.011 billion from the previous month. This uptick might suggest greater consumer spending or improved compliance, which are encouraging signs for the economy.
Distributing this revenue, the Federal Government received N711.314 billion, while states collected N727.170 billion and local councils obtained N529.954 billion. Importantly, a portion of N134.956 billion, which represents 13% of mineral revenue, was allocated to the benefiting states, symbolizing a continued commitment to equitable wealth sharing.
The distribution also highlighted fluctuations in revenue sources. For instance, while Companies Income Tax and CET levies saw notable declines, revenue from petroleum profit tax experienced a small increase. This data hints at an evolving economic environment, adjusting to both internal and external market challenges.
In summary, while the September revenue allocation is slightly less than in August, the overall figures reflect a resilient economy with a diversified revenue base. As Nigeria navigates its fiscal landscape, stakeholders can remain optimistic about the growth prospects driven by increased VAT collections and a commitment to financial redistribution across government levels.
Stay tuned for more updates on Nigeria’s economic performance and financial strategies!
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