The Federation Account Allocation Committee (FAAC) distributed ₦1.703 trillion among the federal, state, and local governments for January 2025. VAT revenue rose by ₦122 billion, while gross statutory revenue increased by 33.6%. The federal government received ₦552.6 billion, states ₦590.6 billion, and local governments ₦434.6 billion amid revenue growth.
The Federation Account Allocation Committee (FAAC) has shared ₦1.703 trillion among the federal, state, and local governments for January 2025, following an increase in Value Added Tax (VAT) revenue by ₦122 billion. This comes after a brief delay due to disputes over remittances with the Nigerian National Petroleum Company (NNPC).
The allocations were drawn from a gross revenue of ₦2.641 trillion, covering statutory revenue, VAT, and the Electronic Money Transfer Levy (EMTL). The federal government received ₦552.6 billion, states got ₦590.6 billion, and local governments were allocated ₦434.6 billion, while oil-producing states received ₦125.3 billion in derivation funds.
FAAC reported a 33.6% increase in gross statutory revenue, reaching ₦1.848 trillion compared to the previous month's ₦1.226 trillion. This growth was driven by higher revenues from VAT, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), and import duties, though Electronic Money Transfer Levy (EMTL) and oil royalties saw declines.
An additional ₦214 billion was also distributed as augmentation, addressing shortfalls. Experts believe the surge in revenue could help stabilize public finances, but concerns remain over rising government expenditure.
