plates-hi-test.webp

Nigeria’s Federation Account Allocation Committee (FAAC) disbursed N1.65 trillion to federal, state, and local governments in May 2025—a N30 billion drop from April. The revenue was generated from taxes (N691.7bn VAT), oil (N863.8bn statutory), and digital transactions (N27.6bn EMTL), with oil-producing states receiving an additional N124bn derivation funds. Meanwhile, 13 oil firms owe N731bn in unpaid royalties. (Sources: Finance Ministry, FAAC communiqué)
  • VAT surge: Collections rose by N100bn (to N742.8bn), masking stagnant oil revenues.
  • Derivation disparity: Oil states received 13% mineral funds while Niger Delta pollution goes unaddressed.
  • Shadow debts: Lawmakers threaten sanctions against oil companies withholding N731bn from public coffers.
A banquet where the hungry serve the gluttons. FAAC’s monthly ritual, carving the national cake with surgical precision, ignores the mould festering beneath its surface. We celebrate VAT windfalls while mothers hawk sachet water to pay hospital bills. We debate oil derivation percentages as fishermen count dead fish in oil-slicked creeks. This isn’t federalism; it’s a macabre dance where treasury looters choreograph poverty. But what happens when the moon is FAAC allocations, and the cripple is 133 million multidimensionally poor Nigerians?

Can a system that shares money better than it creates value ever produce prosperity?
Click to expand...


Sources: Federal Ministry of Finance, NEITI, National Bureau of Statistics