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The Digest:

Federation Account Allocation Committee (FAAC) disbursed N2.10 trillion to federal, state, and local governments for September 2025, drawing from a gross revenue of N3.05 trillion. The allocation, detailed in a communiqué chaired by Accountant-General Shamsudeen Ogunjimi, reflects a significant N150 billion increase in Value-Added Tax (VAT) revenue compared to August, even as statutory revenue declined.

Key Points:
  • Total distributable revenue for September 2025 stood at N2.10 trillion.
  • Gross revenue for the month amounted to N3.05 trillion.
  • VAT revenue rose to N872.63 billion, a N150.01 billion increase from August.
  • The Federal Government received N711.31 billion, the states received N727.17 billion, and the LGAs received N529.95 billion.
  • Oil-producing states received N134.95 billion as 13% derivation.
  • N116.14 billion was deducted for the cost of collection and transfers.
  • Statutory revenue declined by N710.13 billion compared to August.
The allocation underscores Nigeria’s evolving revenue dynamics, where consumption taxes like VAT increasingly bolster public funds amid volatile oil and mineral earnings.

Sources: The Cable