By Anita Dennis
Nigeria’s three tiers of government shared a total of N2.103 trillion as revenue for September 2025, marking a drop of N122 billion from the N2.225 trillion distributed in August.
The figure was released after the Federation Account Allocation Committee (FAAC) meeting held recently in Abuja, chaired by the Accountant- General of the Federation, Shamsudeen Ogunjimi.
According to a communiqué issued after the meeting, the total distributable revenue was drawn from gross statutory revenue, value added tax (VAT), and electronic money transfer levy (EMTL), out of a gross collection of N3.054 trillion – a decrease of N581 billion from the N3.635 trillion recorded in August.
No official reason was given for the decline in both gross and distributable revenues.
From the total N2.103 trillion, the federal government received N711.314 billion, states received N727.170 billion, and local government councils got N529.954 billion. The oil-producing states shared an additional N134.956 billion as 13 percent derivation revenue.
Meanwhile, N116.149 billion was earmarked for cost of collection, and N835.005 billion was set aside for transfers, interventions, and refunds.
Breaking down the sources, FAAC noted that the gross revenue from VAT for September stood at N872.630 billion, higher than the N722.619 billion shared in August – a rise of N150.011 billion. After deducting costs and transfers, N812.593 billion was distributed among the three tiers: the federal government received N121.889 billion, states got N406.297 billion, and local councils received N284.408 billion.
However, the gross statutory revenue declined to N2.128 trillion, compared to N2.838 trillion in the previous month – a shortfall of N710 billion. After deductions, the distributable balance stood at N1.239 trillion, of which N581.672 billion went to the federal government, N295.032 billion to states, and N227.457 billion to local councils.
The EMTL contributed N53.838 billion, shared as follows: N7.753 billion to the federal government, N25.842 billion to states, and N18.089 billion to local governments, with N2.154 billion retained for collection costs.
FAAC noted that VAT, import duty, and EMTL collections rose significantly during the month, while CET levies and company income tax (CIT) saw notable declines. Petroleum Profit Tax (PPT) rose slightly, while oil and gas royalties and excise duties recorded marginal drops.
The September disbursement, though lower than the previous month, highlights the continued volatility in government revenues despite gains in non-oil income sources.
