The Federal Government, State Governments, and Local Government Councils have shared a total of N1.703 trillion from the Federation Account as revenue for January 2025. This marks a 19.6% increase, or N279 billion more, than the N1.424 trillion shared in December 2024.
The announcement was made in a press release by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation, on Thursday. The revenue distribution details were also disclosed in a communiqué issued by the Federation Account Allocation Committee (FAAC) after its monthly meeting.
Revenue Breakdown
According to the communiqué, the total revenue of N1.703 trillion includes:
– N749.727 billion in statutory revenue,
– N718.781 billion from Value Added Tax (VAT),
– N20.548 billion from the Electronic Money Transfer Levy (EMTL),
– N214 billion as augmentation.
Increase in Gross Revenue
The gross revenue generated in January 2025 stood at N2.641 trillion, surpassing the N2.310 trillion recorded in December 2024. However, deductions were made, including:
– N107.786 billion for collection costs,
– N830.663 billion for transfers, interventions, refunds, and savings.
How the N1.703 Trillion Was Shared
– The Federal Government received N552.591 billion
– State Governments got N590.614 billion
– Local Government Councils were allocated N434.567 billion
– Oil-producing states received N125.284 billion as 13% derivation revenue
Breakdown of Statutory Revenue (N749.727 billion)
From the statutory revenue, the allocations were:
– Federal Government: N343.612 billion
– State Governments: N174.285 billion
– Local Government Councils: N134.366 billion
– Derivation Revenue for Oil-Producing States: N97.464 billion
Breakdown of VAT Revenue (N718.781 billion)
From the VAT revenue, the allocations were:
– Federal Government: N107.817 billion
– State Governments: N359.391 billion
– Local Government Councils: N251.573 billion
Electronic Money Transfer Levy (N20.548 billion) Allocation
– Federal Government: N3.082 billion
– State Governments: N7.192 billion
– Local Government Councils: N10.274 billion
N214 Billion Augmentation Distribution
– Federal Government: N98.080 billion
– State Governments: N49.747 billion
– Local Government Councils: N38.353 billion
– 13% Derivation Revenue: N27.820 billion
Also Read:
- FG to Review Electricity Tariff for Band B, C Customers
- Dangote Refinery Reduces Petrol Price Again to N825 per litre
What Led to the Revenue Increase?
The communiqué stated that collections from VAT, Petroleum Profit Tax, Companies Income Tax, Excise Duty, Import Duty, and CET Levies increased in January 2025. However, collections from the Electronic Money Transfer Levy (EMTL) and Oil and Gas Royalty receipts declined.
A Positive Sign for Government Funding
The increase in revenue provides more financial resources for government projects at all levels. With N1.703 trillion shared, it is expected that states and local governments will have more funds for development projects, salaries, and infrastructure improvements.
FAAC’s monthly revenue distribution plays a crucial role in funding government activities, and the January allocation shows a strong start to 2025.