By Joshua Tosin Ogunsakin 
The Federation Account Allocation Committee (FAAC) has disbursed a total of N2.103 trillion in revenue to the Federal Government, states, and local governments for September 2025, marking one of the highest monthly allocations recorded this year.
The figure was revealed in a communiqué released after FAAC’s October meeting in Abuja, as outlined in a statement signed by Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant-General of the Federation, on Friday.
According to the statement, the total distributable revenue included 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). The communiqué read: “A total sum of N2.103 trillion, being September 2025 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”
From the N2.103 trillion shared, the Federal Government received N711.31 billion, states were allocated N727.17 billion, and the 774 Local Government Councils shared N529.95 billion. In addition, oil-producing states received N134.96 billion as 13 per cent derivation from mineral revenue.
The September allocation represents a 16 per cent increase from the N1.813 trillion shared in August 2025 and a 22 per cent rise compared with the N1.728 trillion distributed in July. This marks the fourth consecutive month of revenue growth in 2025, driven mainly by stronger VAT performance, higher digital transaction levies, and a moderate recovery in oil prices. The allocation also surpasses the N1.9 trillion shared in May 2025.
Breaking down the N1.239 trillion statutory revenue, the Federal Government received N581.67 billion, states got N295.03 billion, local councils received N227.46 billion, while derivation accounted for N134.96 billion.
For VAT, allocations were as follows: the Federal Government received N121.89 billion, states N406.30 billion, and local governments N284.41 billion.
The communiqué further stated: “Gross statutory revenue of N2.128tn was received for September 2025. This was lower than the sum of N2.838tn received in the month of August 2025 by N710.134bn. Gross revenue of N872.630bn was available from the Value Added Tax in September 2025. This was higher than the N722.619bn available in the month of August 2025 by N150.011bn.
“The communiqué stated that from the N2.103 trillion total distributable revenue, the Federal Government received a total sum of N711.314bn and the State Governments received a total sum of N727.170bn. The Local government Council received N529.954bn, while the sum of N134.956bn (13 per cent of mineral revenue) was shared with the benefiting State as derivation revenue.”
From the N51.68 billion EMTL, the Federal Government collected N7.75 billion, states received N25.84 billion, and local councils got N18.09 billion.
The total gross revenue available in September 2025 stood at N3.054 trillion, compared to N2.838 trillion in August, indicating stronger performance from non-oil sources despite a decline in crude-related receipts. After deducting N116.15 billion for the cost of revenue collection and N835 billion for transfers, interventions, refunds, and savings, N2.103 trillion remained for distribution to the three tiers of government.
FAAC’s communiqué highlighted that while gross statutory revenue declined to N2.128 trillion in September, VAT collections surged to N872.63 billion, up by N150 billion from August’s N722.62 billion. EMTL revenue also showed notable improvement.
The committee noted that Import Duty, VAT, and EMTL receipts increased significantly during the month, reflecting strong performance from non-oil sectors and digital financial transactions. Conversely, Companies Income Tax and Common External Tariff levies dropped sharply, while Petroleum Profit Tax saw only marginal growth. Oil and Gas Royalty and Excise Duty also fell slightly, highlighting ongoing challenges in crude production and global oil price volatility.
This central pool serves as the initial deposit point for all major federally collected revenues, including oil sales, taxes, and duties.
FAAC’s primary role is to ensure these funds are allocated among the three tiers of government according to the statutory formula.