By Oladosu Adebola Oluwaseun
Federal Ministry of Finance details the allocation of revenue to the three tiers of government in Nigeria for the month of April 2025. A substantial total of N1.681 trillion was shared among the Federal Government, State Governments, and Local Government Councils, representing a distribution from a gross total revenue of N2.848 trillion. This figure encompasses revenue from various sources, including Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference.Breaking down the distribution, the Federal Government received the largest share at N565.307 billion. The State Governments collectively received N556.741 billion, while the Local Government Councils were allocated N406.627 billion. Additionally, the oil-producing states benefited from a derivation revenue of N152.553 billion, which is equivalent to 13% of the mineral revenue generated during the period.A significant portion of the gross revenue was allocated for specific purposes before the distribution to the tiers of government. The sum of N101.051 billion was earmarked for the cost of revenue collection. Furthermore, a substantial amount of N1.066 trillion was allocated for Transfers, Interventions, and Refunds, indicating ongoing financial obligations and strategic spending initiatives by the government.
Examining the individual components of the revenue, the Value Added Tax (VAT) generated a gross revenue of N642.265 billion for April 2025. This represents a slight increase of N4.647 billion compared to the N637.618 billion distributed in the preceding month. After deducting N25.691 billion for collection costs and N18.497 billion for Transfers, Interventions, and Refunds, the remaining N598.077 billion was distributed among the three tiers. From this VAT pool, the Federal Government received N89.712 billion, the States got N299.039 billion, and the Local Government Councils received N209.327 billion.
The Gross Statutory Revenue for April 2025 amounted to N2.084 trillion, which is notably higher than the N1.718 trillion received in the previous month, showing an increase of N365.595 billion. From this statutory revenue, N73.741 billion was allocated for collection costs, and a substantial N1.047 trillion was designated for Transfers, Interventions, and Refunds. The remaining balance of N962.882 billion was then distributed. The Federal Government’s share from this was N431.307 billion, the States received N218.765 billion, the Local Government Councils got N168.659 billion, and the oil-producing states received N144.151 billion as derivation revenue.
The Electronic Money Transfer Levy (EMTL) contributed N40.481 billion in gross revenue. Out of this, N38.862 billion was distributed to the three tiers of government, with the Federal Government receiving N5.829 billion, the States getting N19.431 billion, and the Local Government Councils receiving N13.602 billion. The remaining N1.619 billion was allocated for the cost of collection.
Finally, the Exchange Difference generated N81.407 billion, which was also distributed among the tiers. The Federal Government received N38.459 billion, the States got N19.507 billion, the Local Government Councils received N15.039 billion, and the oil-producing states received N8.402 billion.The communique highlighted the performance of various revenue streams. Petroleum Profit Tax (PPT), Oil and Gas Royalty, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Excise Duty, Import Duty, and CET Levies all experienced significant increases during the month. However, Company Income Tax (CIT) recorded a decrease in revenue generation.In summary, the total revenue distributable for April 2025, amounting to N1.681 trillion, was derived from N962.882 billion in Statutory Revenue, N598.077 billion from Value Added Tax (VAT), N38.862 billion from Electronic Money Transfer Levy (EMTL), and N81.407 billion from Exchange Difference.
During the FAAC meeting, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized the critical importance of domestic revenue mobilization for Nigeria’s long-term sustainable development financing. He also expressed his gratitude to the Federation Account Allocation Committee (FAAC) for their dedication and resilience in carrying out their responsibilities.
