The Federation Account Allocation Committee (FAAC) has disbursed a total of N2.103 trillion in revenue to the federal, state, and local governments for the month of September 2025. This figure represents one of the highest monthly distributions recorded so far this year.
The details were confirmed in a communiqué issued at the conclusion of FAAC’s October meeting, held in Abuja. The announcement was formalized in a statement signed by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, on Friday.
A breakdown of the N2.103 trillion distributable revenue shows it was sourced from multiple revenue streams. The sum comprised N1.239 trillion from statutory allocations, N812.59 billion from Value Added Tax (VAT), and N51.68 billion from the Electronic Money Transfer Levy (EMTL).
From the total shared amount, the Federal Government received N711.31 billion, the state governments collectively got N727.17 billion, and the 774 Local Government Councils shared N529.95 billion. Additionally, oil-producing states received an extra N134.96 billion as 13 per cent derivation from mineral revenue.
This latest disbursement continues a notable upward trend in national revenue, marking the fourth consecutive month of growth in 2025. The N2.103 trillion shared represents a significant 16 per cent increase from the N1.813 trillion shared in August and a 22 per cent rise compared to the N1.728 trillion allocated in July. The surge is largely attributed to improved VAT performance, increased digital transaction levies, and a moderate recovery in oil prices.
Further analysis of the revenue components reveals a shift in performance between oil and non-oil sectors. The gross statutory revenue available for September was N2.128 trillion. This was notably lower than the N2.838 trillion received in August 2025 by N710.134 billion, indicating a dip in crude oil-related receipts.
In contrast, non-oil revenue sources showed remarkable strength. The gross revenue available from Value Added Tax in September was N872.630 billion. This was a substantial N150.011 billion increase from the N722.619 billion available in the previous month.
The total gross revenue available in September stood at N3.054 trillion. After a total of N116.15 billion was deducted for the cost of revenue collection and another N835 billion was set aside for transfers, interventions, refunds, and savings, the remaining N2.103 trillion was shared among the three tiers of government.
The communiqué noted that while Import Duty, VAT, and EMTL receipts increased significantly, Companies Income Tax and Common External Tariff levies fell sharply. Petroleum Profit Tax recorded only marginal growth, and Oil and Gas Royalty and Excise Duty also dipped slightly, reflecting ongoing volatility in the global oil market.
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