By Mercy Gadia Adi
The Federation Account Allocation Committee (FAAC) has shared a whopping N1.678 trillion among the Federal Government, states, and local governments for the month of February. This revenue sharing is a significant development in Nigeria’s fiscal management.
According to a communiqué issued by FAAC, the total revenue of N1.678 trillion comprised statutory revenue of N827.633 billion and Value Added Tax (VAT) revenue of N609.430 billion. It also included Electronic Money Transfer Levy (EMTL) revenue of N35.171 billion, Solid Minerals revenue of N28.218 billion, and Augmentation of N178 billion.
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A total gross revenue of N2.344 trillion was available in February, with deductions made for the cost of collection, totaling N89.092 billion. Additionally, total transfers, interventions, refunds, and savings amounted to N577.097 billion, as stated in the communiqué.
The communiqué noted that the gross statutory revenue received in February stood at N1.653 trillion, a decrease of N194.664 billion compared to the N1.848 trillion recorded in January 2025. This decrease is a significant development in Nigeria’s revenue management.
Furthermore, the gross revenue from VAT in February was N654.456 billion, lower than the N771.886 billion available in January by N117.430 billion. This decrease in VAT revenue is a concern for Nigeria’s fiscal management.
Out of the total distributable revenue of N1.678 trillion, the Federal Government received N569.656 billion, while the state governments received N562.195 billion. The local governments (LGs) received a total sum of N410.559 billion.
A total sum of N136.042 billion (13% of mineral revenue) was shared among the benefiting states as derivation revenue. This revenue sharing is a significant development in Nigeria’s fiscal federalism.
The communiqué stated, “On the N827.633 billion statutory revenue, the Federal Government received N366.262 billion and the state governments received N185.773 billion. The LGs received N143.223 billion and the sum of N132.374 billion (13% of mineral revenue) was shared to the benefiting states as derivation revenue.”
From the VAT revenue of N609.430 billion, the Federal Government received N91.415 billion, the state governments received N304.715 billion, and the LGs received N213.301 billion. This revenue sharing is a significant development in Nigeria’s fiscal management.
The communiqué also noted that the Federal Government received N5.276 billion from the EMTL revenue of N35.171 billion. The state governments received N17.585 billion, and the LGs received N12.310 billion.
From the Solid Minerals revenue of N28.218 billion, the Federal Government received N12.933 billion, and the state governments received N6.560 billion. The LGs received N5.057 billion, and a total sum of N3.668 billion (13% of mineral revenue) was shared among the benefiting states as derivation revenue.
The communiqué concluded by noting that Oil and Gas Royalty and EMTL increased significantly, while VAT, Petroleum Profit Tax, Companies Income Tax, Excise Duty, Import Duty, and CET Levies recorded a decrease.