The total revenue accruing to the federation account from Value Added Tax (VAT) in February 2025 fell by N117.430 billion, from N771.886 billion in January 2025 to N654.456 billion in February.
This drop, along with the decline in revenue from Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty, and CET Levies, affected the total revenue available for distribution to the three tiers of government in February.
According to a communiqué issued by the Federation Accounts Allocation Committee (FAAC) at the end of its March 2025 meeting held in Abuja, the gross statutory revenue of N1.653 trillion shared during the March meeting was lower than the N1.848 trillion received in January 2025 by N194.664 billion.
FAAC stated that the total distributable revenue of N1.678 trillion comprised distributable statutory revenue of N827.633 billion, distributable Value Added Tax (VAT) revenue of N609.430 billion, Electronic Money Transfer Levy (EMTL) revenue of N35.171 billion, Solid Minerals revenue of N28.218 billion, and an augmentation of N178 billion.
The FAAC meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, also had in attendance the new Accountant General of the Federation, Shamseldeen Ogunjimi.
According to the communiqué, a total gross revenue of N2.344 trillion was available in February 2025. Total deductions for the cost of collection amounted to N89.092 billion, while total transfers, interventions, refunds, and savings amounted to N577.097 billion.
It stated that from the total distributable revenue of N1.678 trillion, the Federal Government received N569.656 billion, the State Governments received N562.195 billion, the Local Government Councils received N410.559 billion, and a total sum of N136.042 billion (being 13 per cent of mineral revenue) was shared with the benefiting states as derivation revenue.
Regarding the N827.633 billion distributable statutory revenue, the communiqué stated that the Federal Government received N366.262 billion, the State Governments received N185.773 billion, the Local Government Councils received N143.223 billion, and the sum of N132.374 billion (13 per cent of mineral revenue) was shared with the benefiting states as derivation revenue.
It further noted that from the N609.430 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N91.415 billion, the State Governments received N304.715 billion, and the Local Government Councils received N213.301 billion.
A total sum of N5.276 billion was received by the Federal Government from the N35.171 billion Electronic Money Transfer Levy (EMTL). The State Governments received N17.585 billion, and the Local Government Councils received N12.310 billion.
From the N28.218 billion Solid Minerals revenue, the Federal Government received N12.933 billion, the State Governments received N6.560 billion, the Local Government Councils received N5.057 billion, and a total sum of N3.668 billion (13 per cent of mineral revenue) was shared with the benefiting states as derivation revenue.
The augmentation of N178 billion was shared as follows: the Federal Government received N93.770 billion, the State Governments received N47.562 billion, and the Local Government Councils received N36.668 billion.
The communiqué also stated that in February 2025, Oil and Gas Royalty and the Electronic Money Transfer Levy (EMTL) increased significantly.
